I like this idea quite a lot actually... Part of the idea behind the AoE nerf was, we believe, to attempt to inhibit farming, particularly solo farming, and in doing so, try to put more control on the economic rediculousness of recent months. But it seems to me that the AoE nerf won't help the economy much in that respect.
By making it more difficult to farm, you are decreasing the influx of supply without decreasing demand, and thus prices for high-end items goes UP and it becomes even more difficult for new players to compete. Now with the likewise reduced influx of gold, the prices of items may settle a bit after some time, but the effect of this will be less noticeable than the effect of the decreased supply of high-end items.
But dan's idea here of making high-end items rewards for completing lengthy, and/or multi-part, and/or difficult quests means that anyone, even new players with no money, can acquire the high-end items which will help them to compete with the more established, wealthier players, thus making competition more a question of your skills and abilities than of the amount of time played. Wasn't that of major concern and priority to the developers initally anyway... making the game fun for all and making it so new players can compete just as well as players who've been around a while I mean?
So if you make it so that high-end drops either no longer drop, or drop at a MUCH less frequent drop percentage, so that farming is no longer a viable means of monetary acquisition, and then you make it so that anyone can get the high-end items if they do the work for them (run the quests that is), then the AoE's could go back to the way they were, or close to it. You could also make it so that these high-end items that you get from quests rather than farming for them or farming for collector items are automatically customized to the character when they are recieved, thus making their sale to lowbies and creating twinks an issue of the past, though I'm not sure how that would work out with the already existant items. The idea would need some tweaking I suppose
Another possible means of making it so that new players can compete with the more established players is to put level limits on equipment... something maybe along the lines of... in order to use the armor crafted in Lion's Arch, you have to be a minimum of the same level as the henchmen that can be hired there, and likewise with places like Droknar's Forge. Do similar level restrictions on weapons. Then make it so that if you are below the level restriction, then the effectiveness of the item is reduced proprtionally to the extent to which you are below the requirement (thus a weapon where you don't meet the restriction would still work, but not as well). I'm sure this is what the original idea was behind the attribute restrictions on weapons, but those restrictions it seems are not heafty enough... it's rather easy these days to find high-end max damage weapons with bonuses and upgrades and a requirement of 8 or 9... maybe make it so that the minimum requirement is always higher if the item has bonuses, and even higher still with upgrade items.
Again, such changes could make it so new players could compete reasonably well with established players because of skill, not equipment they can or can't afford. It would also reduce the number of people willing to pay for runs to places like Droknar's Forge and they might play through the game as it was intended. Plus, high-end items will have much more limited usability and would therfore become less expensive (because of decreased demand), and having massive ammounts of gold will no longer make you a more powerful player, so farming for high-end items and gold will no longer be as useful and will occurr less frequently.
Now as I've said in other posts I believe that the AoE update isn't ALL bad, and there are some aspects to it which I do like. However, I think it still needs some rather substantial tweaking, and if it's original intent was to inhibit farming, then the above suggestions, especially dan's suggestion, could go a lot further in successfully inhibiting farming while giving the dev team more flexibility with what they can change in the AoE issues.
My 2cp,
Drake