If there's one thing you can learn from today's patch it's how horribly saturated the market is with gold and high end items.
A gold cap is pretty much a no brainer and shouldn't have exceeded what the max bid on the Auction House was by such a large margin.
I remember when this game launched. High end items were worth somewhere around 2-5m gold. Now they're worth such an insurmountable grip of gold that it has vastly exceeded the cap at which the Auction House was designed to handle.
The Auction House was going to eventually collapse. This was apparent from day one. After a full year there's still no effective gold sinks, still no destroying of good gear (It's only replaced with newer better gear with each "itemization update") and botting is still just as rampant as it ever was.
Now players are struggling just to keep up with the astronomical prices and have resorted to using 3rd party sites to host their "auctions" so that they can sell items for their true intrinsic value.
To make matters worse, the game is further being designed with this mindset that it must combat inflation through gold sinks.
The only method to combat this inflation is with a cap. Personally, I would set the cap to 5 times the current AH cap (10b gold) and announce the change well in advance. Give players a little bit of time to liquidate their current gold, then just outright cap it. Otherwise, you'll keep playing this cat and mouse game with the current inflation.
A gold cap would be the first logical step in the right direction.
The second thing I would do is keep the game's current model of non BoA loot, but then add new items that ARE BoA that drop alongside them. You can play with the droprates but in general the drop rate should feel as though a player is actually progressing their character through these newfound items that they MUST play the game to collect.
What players won't see is the beauty of this system. While this gear might slightly reduce the value of hard to find items, in the long run it will help maintain a healthy game. The reason for this is to allow people to actually obtain their items through playing the game.
You guys said it yourself, you reduced the droprate of good items ENTIRELY BECAUSE the Auction House exists. It is pretty evident that the Auction House has done more harm than good in giving players a sense of satisfaction from finding items in the game.
Every day when a new "Amazing" item is created, all it simply does is devalue every other item floating around in the economy. As time goes on, the floor simply rises with the level of gear that's available on the Auction House.
Right now, the most profitable way for anyone to play the game is to simply not play it. Go to your job, make a little bit of money, turn around and use a fraction of that money to save you literally a whole year of grinding gold in the game, buy gear, then turn around and complain that you can't find anything better than what you just bought.
Now if I was to say find these awesome items by playing the game, but I couldn't trade them away... I would get this complete sense of satisfaction from knowing I actually earned what I am wearing.
Please... I'm not even asking at this point, but more like begging... If you're going to keep one MMO mechanic in place then you have to institute the other MMO mechanics that are in game to counterbalance them.
TL:DR If you have an Auction House, you must have a gold cap and the uppermost top tier of items MUST be BoA.