Quote from maka
Item binds on 1st trade.
Aaaaand down goes your pretty model.
Not quite because I believe the original proposition was to use the friend's list as the only means of trading. If item binds on 1st trade you run into the same problem as the items that drop as BOA. Put another way, if Player A trades Player B item0, item0 is now bound to player B right. Well now if player B wants to trade for item1 that Player C has, he wont be able to use item0 in that trade. And its quite likely item0 is worth trading since player B traded for it in the first place... so now you got people complaining they cant trade an item more than once with their friends (no trading back and forth as well).
The only true way to facilitate user-friendly, safe, and fair trading is the Auction House... thats it. All of these friend-trade or clan-trade ideas have major flaws in them and trying to fix these flaws would only make the game mechanics so convoluted the entire game would become repulsive to play. You either want to be able to trade... in which case we need the AH back, or you don't want trade in which case say hello BOAs for the future of D3.