The point is moot - high AH prices for low level profession items mean only one thing - low level players have a very simple way to earn huge amounts of money if they know what they are doing.

In WoW for example a newby player can pick up mining and herbalism and go off questing while also mining everything in sight. By simply selling everything he mines on the inflated market such player will get huge amounts of gold for his level.

You don't have to buy ANYTHING off the AH. People that buy stuff off the auction house before they have a steady gold flow from a lvl 70 with an epic flying mount are just careless spenders. Of course, judging by the state of the US economy, a lot of people in the US are. No economy in the world can fix people's stupidity, really.