The problem with the AH was it turned the game into one where you play for the slim chance to get a drop good enough not to use on your own character, but to sell on the AH. Every piece of gear I have is from the AH. Because the drops suck, period. Itemization has been trash since day one. Instead of playing the game to improve my toons and experience the thrill of getting that awesome legendary or set piece, I play, praying that I get something that might sell on the AH so I can buy that better piece.
It's nothing to do with itemization.
The problem is not that drops "suck" or that itemization is "trash".
The problem is that you're comparing your drops to the drops listed on the AH by all the millions of other players. And of course, the chance of you finding something better than what is listed by the bucketload is incredibly tiny.
But there is literally nothing that could be done to drop rates that would change this situation. It would just move the goalposts of what you considered trash. Even if every second drop was legendary, you'd be in the situation where every piece of gear you had was from the AH, because you could get perfect legendaries with maximums in key stats for 20,000 gold, whereas you'd never seen anything drop yourself with perfect stats.