Crone
Bronze Baronet of the Realm
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They explained the limited testing in the video. They said they were so concerned with not letting spoilers out into the world, and they wanted everyone to experience the story for the first time when the game launched, that they screwed themselves with the 45 minute Demo as they called it in the video, not even a beta test. I guess as you mentioned, this is just them showing more arrogance. We love our story so much, and be damned if we'll let anyone know it before they play it!I always found it a bit frustrating that they blamed the RMAH. I don't think the auction house was really the problem at all. The problem is that they see it as an all or nothing equation. As you mentioned drops were insanely rare, so you were forced into the auction house. Now they have made drops insanely common, but bind on pickup essentially. Personally I think keeping the auction house and having drops somewhere in the middle would've been more interesting.
Ultimately there was a lot of arrogance on Blizzards part with D3. The had so many issues and such a lack of content that I can't help but feel like they fucked themselves by limiting testing to Act 1 only...
I think the system they've adopted now across all of their games where the PTR is very much takes part in the development process is good. Can make a lot of changes, and test things out. Nothing is ever still perfect, but it's better.