In Diablo 2 every piece, EVERY piece of gear I wore I found.
In Diablo 3 every piece of gear I am wearing since I hit 60 I bought in the Gold AH.
Every bit of your argument towards the idea that the drop rate is fine is based around the auction house and sustaining an economy. That's great but when that kind of idea of contrasted against what Diablo was before May 15th, it is quite different. This is the kind of crap that drives me crazy about D3.