It's hilarious hearing that from you, cheapy. Go to trammel!
It's really a good way to make money to be honest. If you win, you still make a good chunk of money on the suit. People are choosing to take advantage of the buyback prices because it lets them equip in better suits.
Here are the current rates which are accepted as the norm:
Garb - 625k
Quiver - 150k
Totem of the Void - 200k
+4 Int Boots - 250k
Samurai Helms - 100k
Shrouds of the Condemned - 150k
Imbued pieces -20k per
Faction artifacts - 1:1 gold to silver (5k rank1, 10k rank4, etc...)
We only counted the faction artifacts and imbued pieces (weaps, armor, jewels, anything else imbueable) for the discounted prices. The rest of the stuff remains at full price with a faction hue discount. A "newbie" probably won't even get looted unless they're wearing the above items, and the above items are 100% reasonable. I pay over 1m still when I die. Someone who chooses not to wear the more expensive items pays like 100k for their suit.
Also, everyone has been getting their stuff back, aside from diablo and nadal (because they rage on each other). This system is working out very, very well for all of us.