I am really having a hard time how anyone thought the AH (in any form) was good. It tanked the idea of how you played Diablo; the team themselves said certain things were not implemented/changed because of the AH. D3 was less what Diablo was because of the AH. How was that in any way, a good thing, and how is it, in any way, a bad thing that they are throwing in the towel?
And yea, I imagine they aren't losing much revenue, considering how people just are done with D3 because of the AH. It's empirical but I'm seeing a lot of people willing to give D3 a try with the AH gone, so I imagine this is a good move all around.