Could you give an example of how this (arguably flawed) logic would translate into wow in practice?
Can you even buy a full set of qualitatively high-tier gear? "Everyone else"? I assume you mean the people he elects to have in his group. Why is it a problem that Timmy has demands in regards to whom he plays with?
As I said, I haven't played wow in a very long time, but back in my day, websites were flooded with full BT toons for sale, yet only a fraction of wow's population made use of said 'services'. I suspect it's also a fraction of wow's population that buys one or two items from the AH right now. Do you have evidence that shows the contrary?