At a GDC talk today, Jay Wilson, director behind Diablo III, mentioned that both of the Auction Houses "really hurt the games," reports Joystiq. According to Mr. Wilson, almost every single one of the players in Diablo III has used one of the two auction houses, if not both, and roughly 50% of the players still use it regularly.
"I think we would turn it off if we could," he said, but continued to explain that they have no real idea of how many of their consistent players love or hate it.
The Real Money Auction House is, in my opinion, the biggest contributor to taking Diablo III in the wrong direction. Simply turning it off wouldn't solve anything at this point, though, since the damage to the game's core design is already done.