Forgive me for not reading the entire discussion, i am short on time, and i just wanted to say what i had to say on the item sink issue.

Sorry for the long post but please read it.
Guild Wars has very few item sinks.
One is item (weapon) customization, which is only done by physical damage dealing charracters, as casters have no use for the extra 20% damage on their staves. But i feel this isnt something that is commonly (enough) practised, as most of the damage done comes from skills, not actual weapons, thus people feel that a slight performance increase (which is actually much less than 20%) isnt worth it, instead, non customized items are used as assets, in case of an upgrade with another weapon, the previous one can be sold.
This whole situation loweres the ammount of items that are taken off the market.
Second used to be item (mod) salvaging that broke the items, but with increased chance of item not breaking in the proccess via titles, and the introduction of the perfect salvage kit, few items break anymore, items and mods are recycled multiple times before they are broken, thus again not taking much off the market.
There are few gold sinks. Skills are the major gold sinks, dyes, runes and crafting materials used to be viable gold sinks, but prices are now so low their effect as sinks is negligible.
Because of all this, over the years, there has come to be an imbalance between the ammount of items and the ammount of gold produced by the game via drops, and the ammount of items and gold that are taken out of the system.
This has created a saturated market, where items are more and more devaluated as time passes.
I remember a time when it was not only possible to trade items of blue and purple quality, those items were of actual use to players, because gold and green items were what they were meant to be - rare. But over time the market has been saturated with golds and greens, devaluating not only blues and purples, but themselves as well.
The items that retain their value are now only rare skin items. But this is also subject to changes. As these are the items of value, they are also the target of farming. They will soon loose their value too, because of the topic of this discussion - few sinks.
I hope you see my point. Item sinks are needed, needed very bad.
I am going to resort to an unpopular measure to further demonstrate my oppinion - comparing to WoW. : )) (although, keep in mind that i am not doing so because i considder WoW to be 'the' game all others should look up to, its just that WoW is the only other MMORPG that i am experienced enough with in order to make such comparisons)
In WoW, every item that is not gray or white in quality binds on being used. This means they are possible to sell, but when they are used, they 'bind' to the user, the equivalent of the customization in GW. This creates a balance between items produced by the game, and the items taken out of the system. I dare to say its in perfect harmony. Gray items have no actual use, and white items are so inferior or they are used as reagents in crafting recipes - destroyed in the proccess, effectively, these two cathegories of items are virtually no threat to the ballance.
In the current GW situation, ArenaNet has to be open to at least considder unpopular changes, such as the suggested item breaking. Although i agree, it is not the best thing that can be done, but something has to be done to prevent the impending doom. (a little drama never hurt anyone lol).
In fact, most, if not all the thigs that can be done concerning this issue are going to be painfull to some. Thus i can understand the reluctance.
Possible solutions would include a WoW-like system, where every item is customized when used. An unpopular measure, i am sure. Furthermore, heroes being considdered separate entities, what i mean is items customized for one entity - the player - cannot be used by an another entity - his hero. And vice versa. Another unpopular measure. Salvaging having a base chance of 50% for not breaking items, that is unmodifiable by any means. Yet another unpopular measure...
But i belive that it can be worth it.
Rejuvenation of the economy, reemergance of forgotten weapons and a renewed popularity of forgotten areas can be the possible outcomes.
I really hope i didnt write all of this in vein. Id like it to at least be read by someone, and considdered. Preferably by someone from ANet.
Cheers 'till then.
PS Also sorry for typos. English isnt my main language. But im good arent i?

Kidding...