This /auction issue deals with various aspects of PS and mixes them in a confusing way. Each one of us focussing on a specific one, there are little chances it will reach the needed consencus.
Being in the "General discussion" part of the forums, I personaly think it's more intended to find a generaly agreed use of /auction as it is implemented. A way to use it that will make it acceptable for public tradings to share the ingame world with other activities (discussions, fights, ...)
To suggest changes, the "Whish list" is the right place. All you need is not only to point a problem but suggest improvements. Some where made here that are constructive and deserve a collaborative thinking.
Sorry if I hurt a few, by blaming the way they did point problems, but there is little need to insist on saying "it's bad" once it's agreed that a problem exists.
Let's try to separate the various critics, workarounds, and whishes made so far:
* First, the original question made to GMs and devs by Edicho:
I can only answer as a GM, the answer by devs can mainly be to implement or not a suggestion made in thhe whish list.
GMs are only giving recommandations, reminders, or even warning when needed. When is it needed? When ingame actions are abusing the system features for a personal benefit without respect of the need to share the server. (please don't answer this here. It's not the place and this is an incomplete definition that only applies to this specific issue).
That is why there is no "official" GMs position. The only GM intervention that can occur in auctions is to ask one to lower the frequency of calls to prevent flooding and to avoid private dialogs on this public chanel.
* is it IC to answer an auction in /tell? yes if you are close enough to whisper.
* /auction is not a worldwide chanel. It is like shouting. There is a separate command to allow a different color to be used. Why a different color? because of a possible different intonation IC and to make it easier to follow a transaction. An auction being made of successful bids, it makes it easier to see the next one within other chats. Since it is in a separate chat tab, those /historical/ reasons are less obvious now.
* The command name /auction defines a primarily intended usage. The fact that it is used for Shop announcements, instead of /shout is the proof of players' creativity when it comes to use a command in a respectful way. What is in /auction color is to be read by people looking for gear or interrested in knowing the trade prices of them.
* The command is not OOC by itself. Only an OOC usage of the features makes it so. You have to remember that not all the implementations are made in the name of "realism" nor IC meaning only. Some features are here for the gameplay. To make it easier to deal with "real" facts, like all the commands used to stay in touch with your guildmates that are often friends OOC. There is no reason to claim that speaking loudly when auctioning would be OOC.
* Creating market places. It is a whish. But before proposing an implementation, you might consider that in a medieval fantasy world, it is unlikely to have a "Mall". A souk of mobile merchants has his place. Limiting it to a specific place would be irrealistic. Once again if the usage is to sell in the arena and the plaza, it's a local custom, not an enforced rule.
* If you ignore people abusing a feature, (visible stats, range of chat commands, ...) there are little chances that he will change his ways if you ignore him. Before long others are going to do the same and whether you like it or not, it will be the new custom and the general agreement to to so.