People that use AH add-ons obviously have an advantage over me, because of how quickly they can buy my things and repost for more, or undercut me with inhumanly fast speed. I think it's ridiculous. But there's nothing we can do about it. Blizzard has no problems with it at all, and even though it's highly annoying... such is life. (or at least WoW pixel life.)
I still manage to make a few thousand gold, counting that I split all profits with my mother (she often puts things in our guild bank for me to sell for her), and sometimes more depending on the items. You CAN beat the other guys if you're clever. But try not to put auctions so cheap to try and fool a potential "bot" unless it's an item you're willing to see go for that much, because there are many watchful people that will buy any and everything that they or an add-on deems is put up for ridiculously cheap.
I'll never have a gold capped character. But limiting the gold cap per week, Wtfear, wouldn't really help. I can only foresee it causing more issues. :( I feel your pain, though.
"Because everyone should have a fair chance of selling items on the AH. An undercutter who undercuts every 3 minutes (like I'm doing currently to beat this other guy) is preventing other people from making money." -Quoted from Wtfear, I'm a scrub when it comes to forums ><
I wholeheartedly agree that everyone should have a fair chance at it.
Edit: Typo like a pro :(