I am apprehensive about this because poor implementation would be very bad. That said, I do think it is a great way to encourage crafting and balance the in game economy.

This basically means Crafters will control the market and prices will be set based on Cost and Availability. A Big problem in 1.0 was people did not Convert or Meld Low level gear because it became obsolete and was better to sell. I think this will go a long way to encourage low level Materia use and prevent flooding the market with items.