Every "Auction House" in the MMO industry has some form of bidding. What people are asking for doesn't. There for its not an Auction House.
Also please don't cut the quote. It makes it sound out of context.
The Direct Way - Just buy the item right off. This seems a bit unfair to the Retainers and Vendors. Because when you go and view a Retainers inventory for a specific item you might see they sell an item you might buy if the price is right. So instead of you just buying one item you buy 2. This benefits both players and I feel is lost with the Direct way.