I did a quick check on the auction house and verified that Arctic Fur is selling for close to 100G. That's pretty steep. So then I checked heavy borean leather and it looks to be selling for maybe 5g apiece? It's hard to say, since a few people posted for 5g and everyone else is trying to get 25g apiece. Which I guess gives me my answer, leather prices are all over the place. I can only assume this means no one is farming anymore and the prices are wonky. If you had to buy the borean leather to get the Arctic Fur, you'd still be spending 50g or more. This change to arctic fur will probably drive the leather prices up even more than the currently are. I have a feeling this won't work out to be a great solution, but we'll see.
Feel free to correct me if I'm wrong on this. As I said, I dropped Skinning to make room for Inscription so I'm not hip on the Skinning world. In order to correct pricing and availability irregularities for Arctic Fur, they are now being made available via the Trader. But from what I'm seeing, the prices for Heavy Borean Leather are also problematic. The situation for both item is due to no one gathering because they can easily get money from dailies. People no longer need to farm crafted materials and play Russian Roulette on the AH to make money. Most likely, players farm what they need for their own personal use and pay cash for anything else. But if everyone has this attitude, there's nothing left to buy. Somehow Alchemy seems largely unaffected by this - apparently this is where the Auction House whores are hiding.
I never thought I'd see the day when dailies would actually hurt the economy. There's just too much free money out there! Unfortunately there's not a great way to fix it at this point. You can't take dailies away, and you risk major player aggro if you nerf the cash component of dailies. In fact, in BC they were pushing dailies on us as a way to deal with gold farmers. And yet, strangely, gold farmers are still around. I can't get my head around that one - people too lazy to do anything besides raid and PVP all day. Unfortunately, I actually know a person who fits this profile and would rather buy gold instead of spending an hour a day earning it.
The nicest way I can think to deal with this is the phase dailies out as a cash cow and expand the token system to compensate. You still want players to do dailies for faction and such, you just want to reduce the cash benefit. On the other hand, you don't want to mess up your anti-gold-farmer strategy either. So you'd probably have to beef up the token usage. I'm not sure I like this solution either, eventually we wouldn't even have gold we'd just have tokens for everything.
What do you guys think? Are dailies hurting the economy or helping?