I have 350k dps monk and over 1000 played hours. There is absolutely no way my character would be as good as it is now if I did not use the AH. Pre patch, if you wanted a descent character you simply had no other options but to use the auction house
That was just it though, you stopped playing the game in order to play the auction house. It was a game designed around the AH mechanic from the ground up in order to generate more revenue.
Now that's gone you can go back to playing the game and get the gear you stood no chance of getting before!
Diablo to me is all about the drop and always has been. Knowing you weren't going to get the drops from the game anymore ruined it for me. Whats the point in playing it.