Spiritbinding = Ex?

[Pseudopsia]

Now some one did say well this will help with not flooding the market but infact thats bull, because if something is a high seller players will choose to put it up and because the item is in demand the prices dont come down.

That's supply and demand. If there's equal supply and demand then prices don't change if there's no inflation. This is the case that you're describing.

If there's a high supply and low demand then price goes down. ( if no inflation)
If there's a low supply and a high demand then price goes up. ( if no inflation)

With a questing system gear is easily obtain through quests, this increases the supply that competes with crafters. If nothing is done to offset the increase supply then the market becomes flooded. Crafting ingredients becomes more expensive than the finished product. This discourages players from crafting and makes it expensive.

There's a reason Yoshi-P is adding this system into the game. He doesn't just add things from other games for no reason.