But you are forgetting a key factor in this. Yes, there would be less crafters, and good things would come from that. Since there are less crafters, demand for crafting goods drops, prices go down, crafter's profit margins increase. Eventually the price for those crafting materials would drop to the point where the crafter can compete with the npc's price and make a profit. However, if too many crafters try to jump onboard, the material supply goes up in price and selling price for finished goods would drop. Thus, crafters would quit until you are back down to a good balance. An economy can only support so many crafters for particular goods. As it stands right now there is no limit on the number of crafters, but npc's selling the rare items would do that in addition to easing the inflation problems.So then, why would someone spend millions and hours to level a craft when people can buy alternative at NPC? To save a few gils on items they can use? Never gonna make it up for the investment in leveling a craft. So it's simple, you will see a lot less, if any, people leveling a craft.
What you would create is a headache that takes 10-15mins to buy a single good. No one is going to blindly bid what they think something is worth, they will start low and creep up. And just the opposite can be argued, there are some very rare, but common looking items that you have no idea what they should be worth without the price history. There could be a really high demand for the good and you wouldn't know that. Thus the ah would sell out instantly because people put it up for too little, forcing people who really want the good to either go get it themselves or camp the ah (kind of like nm camping 8) ). I would like a system though where you can actually see what people have goods up for sale at instead of this blind guessing system.With no price history, there is no way to jack a price or undercut it. If you farm or craft something, you will put it on AH to what YOU want for it, what you think is a fair compensation for your work. Then someone truly bids what HE thinks is fair, reflecting how much he wants the item. If both prices/ bid meets, then you have a sale. If not, bidder might be willing to try again for a bit more or seller might try to cut to get rid of it.