From a gameplay perspective:
Alchemy -> Making gold just doesn\'t make sense, it becomes a \'get rich quick\' method. Even if you work hard to restrain it, it\'ll provide the means to fund it\'s own progression.
Alchemy as potion making is probably what was originally intended, and is the common definition used in a fantasy setting. It\'s a useful (but not overpowered) skill.
For the record, no alchemist ever succeeded in making gold, but what they learned trying was a valuable contribution to human knowledge (Metallurgy, Chemistry).
1. Can create them cheaper yourself, and may be able to create otherwise unavailable potions.
2. How so? All you make is gold.
3. Huh?
4. See above.
5. See above.