The auction house featured a real-money feature
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"The problem is, of course, that it over-legitimized trading. It made it too easy D2R ladder items. I'm sure you're aware of this , and its consequences. We were worried about the ramifications before the time and we believed that the benefits would outweigh the negatives, and [World of Warcraft's auction house] seemed like a good illustration of the concept. Evidently, we were wrong. "
The error was due to two major areas. The auction house featured a real-money feature that let players purchase loot straight. This element opened Blizzard to criticism of its design of low-quality loot drops, in order to maximize market exchanges.
It took a tiny amount from every transaction, it took a small cut from every. Whether or not this was the case, the overall quality of loot was extremely poor at launch, and fans were justifiably suspicious--especially given that Blizzard's acquisition from Activision was only a few years old at this point, and longtime Blizzard fans were watchful for any resulting changes in corporate culture.
In addition, the existence of real-money trading made the anti-cheat methods which are more crucial to the integrity that the games. If one could create the value of a product indefinitely, such as, for example, this would cause fraud and ultimately cause a decrease in the value the items.
This was a part of the"always-online" aspect that caused players to be frustrated in the initial days. If you're constantly online, the system will constantly look for cheats like duplication glitches buy d2r items. However, that doesn't make players who preferred to play offline feel any better.