It was pretty decent when it first came out, even with the auction house (who knows, you might get that 1 in a billion drop for a Monk, that you can't use, but someone might pay 50$ for).
I played for a while, then drifted away... I liked playing, but because of the AH, the drop rarity was such that you basically never got anything good.. and if you did, it likely wasn't useful for the toon you were playing.
A few weeks ago, in prep for the expansion, the patched to 2.0, including the new loot system. GODDAMN ITS FUN. You now basically have to get all your equipment yourself, which is fun. And there is a fairly high amount of "smart loot", so if you are running a Barb, 80-90% of your drops are Barb focused (but enough other stuff drops that you can feed your Wizard or Demon Hunter some decent stuff as well).
Also added was changes to Paragon levels, making it so that instead of each character having their own Paragon pool, all characters on the account share the same pool. So, when I start my new Crusader, I'll get a bit of boost because I'll have 60 paragon points to spend on him. This also means you can run whatever character you feel like running at the time. If you have a capped Wiz and a capped Barb, run either one, all the xp goes to the same pool (none goes to paragon unless you are at the cap).
The new expansion actually made the higher difficulties hard... but with the exception of class-specific set pieces, and I think the highest level of gem, everything can drop in all difficulties. Torment difficulties have a very, very small increased chance per slider tick of a higher legendary rate, but it's really a small increase... you'll still get good loot running Normal. You just get a gold and xp rate bump for playing the harder difficulties.
So.. yeah, it's exactly what I wanted when D3 came out; D2 but prettier, more engaging and lootier.