Honestly I see no worthwhile counter-argument to spending all of your materials to the point of running out, then crafting whatever you can with whatever you find. That's what I've done since the patch and it hasn't restricted my upgrading process (mostly because I simply don't find enough stuff worth enough money to buy upgrades to begin with) in any way.
And I guess that's your opinion. It may have been this crafting / upgrading philosophy that has led you to the point that you are (in terms of being gold-poor -- that's what I'm speculating right now). And when people are gold poor, they have essentially stopped (or given up) looking for upgrades that are affordable (because they probably don't exist when one has very little gold in one's account) because the mountain they have to climb (in terms of saving for a decent upgrade) seems so great that they'd sooner just spend on crafting in hopes for an upgrade.
My argument is more preventative in that I would say don't go down that path. Always have gold ready for an upgrade (no matter how small) because you can always sell your current piece for a profit (or at least a sizeable return if your original purchase was done wisely). Remain disciplined in crafting so that you can drop gold on an upgrade when the opportunity arises. And please don't confuse discipline with (ultra) conservatism - there may be overlap, but very different in my book.
What gold in your account does is give you the luxury of choice. When you don't have gold, you don't have that luxury and you are restricted to only one avenue for upgrades (until you have a magical drop) which would be via crafting. When you do have the luxury of choice, you have more decisions to make and it is from that basis I am making my case towards a disciplined approach towards crafting. For me, it is through a disciplined approach towards spending that I am able to wield two different sets of gear -- one for my DW monk and one for my 2H TR/Bell monk that are both equally effective for different purposes, all without ever touching RMAH and no AH flipping (differentiating that from my stance around profitable upgrading). I could have also chosen to not go the 2H route, save about 40M gold and dedicate those funds towards upgrading my DW monk. Point is, I had the luxury to make that choice.
Another case in point, with the gold in my account, I just sniped another socketed LS EF stat stick for 10M this morning that gave 3% LS (vs 2.8%), lower fear proc than my old one (11.0% vs. 11.9%) and upgraded my DW monk by about 3K DPS (from 158K to ~161.5K sheet DPS). Something I wouldn't be able to do if I was dirt poor. I am still routinely finding upgrades on my monk that are costing me less than 20M a pop (in some cases <10M), even at my DPS level. True, those upgrades are harder to find, but they are still out there. And lately, each time I upgrade I also end up with roughly the same amount of gold in my account after selling my old item, if not more. I have also made a conscious decision not to upgrade my gems in my chest & pants because I am still routinely able to find better upgrades for my items that will yield me more return than upgrading my gems - but I am getting close to the point of being able to upgrade my emeralds one or two pieces at a time (where the cost/DPS gain from upgrading the gems becomes roughly equivalent to the cost/DPS gain of any other item).
Is crafting part of my upgrade strategy? If you look at my profile, you can see that it is -- I wouldn't have my bracers or my amulet if it weren't and it will continue to be. But it occupies a very small proportion of my gold usage, which is a very conscious decision I am making about how I choose to spend my gold. And I can assure you that I will be dedicating a larger amount of gold (probably same proportion) to crafting as my gold balance climbs towards the 100M mark (at that point, dropping 10M on crafting will be much easier than dropping 10M on crafting when I only have 10M in my account).
And so with that said, when I do look at your monk (I know you didn't ask, but I'm doing this for the sake of argument), I see two spots that, combined, can give you a nice DPS upgrade with little impact to EHP (and even the remote possibility of increasing it) that probably won't be astronomical in price, and allow you to sell your current pieces at a decent price and be on your way to having gold ready to spring on cheap upgrades on your toon. It's just a matter of making those upgrades a priority and exercising discipline in your spending to get to that point.
Is this a "worthwhile counter-argument to spending all of your materials to the point of running out"? That's up to the reader to decide. For me, I believe that it is a solid one.