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You're right your gear is pretty bad. Remember some legendaries have random properties. Those have to roll good in order for the item to have high value. Some legendaries are crafted; you simply get the right materials and use the blacksmith to craft. You also need the specific plan for each type of legendary you intend to craft.
They are certainly not found in the game I play or anyone I know (that's left) plays. Seriously, you think hitting the Powerball is hard? Try self-finding a 1500+dps weapon in Diablo. I always start out with a great attitude when I sit down to play only to have it turn into "let me bang my head against the wall until I blackout b/c I can not take this anymore" attitude in about 2 hours.
They are ultra ultra ULTRA rare. It's like finding 50 zod runes on a single trash mob in Diablo 2. You can find them on the AH if you like. They go for 10s of millions of gold, but you should be able to afford that looking at your chars (nice DH btw).
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