Thee are both legit and non-legitimate D2 players. I think the issue with drop rates/item rarity is something that may need to be addressed as botting/duping leads to more supply of items. The trade economy in D2R with reduced botting/duping will be far different.
Although I favor the option of personal loot, it does not ensure a thriving economy. I have argued that it may make a more robust economy, but the effect of the loot system is likely dwarfed by the issues of botting/duping/RMT.