1. Blizzard add rules to try and stop this behavior.
2. People find a loophole, and continue to do it.
3. They ban/strip people of thier ill-gotten gains.

The Whirlwind follows....

I completely disagree. There is an implied "spirit of fair play" that should be followed by ethical players. Anything that happens to people behaving unethically is fair game, in my opinion.

I know there are people out there that want to exploit every available loophole to get an edge on the competition, but I don't want them in my guild, in my groups, on my teams, or on my server.

Schadow is right on. Just because there isn't a rule for it doesn't mean that it is ethical. You can't tell me that anyone win-trading actually thought that it was legit. They all knew it was an exploit.

From the Terms of Use:

"Using or exploiting errors in design, features which have not been documented, and/or "program bugs" to gain access that is otherwise not available, or to obtain a competitive advantage over other players;"

This is their catch-all - clearly the win-trading problem is an error in design, and by exploiting it you are gaining a competitive advantage.

I guess it depends on the server you are playing on, but on Frostmourne win-trading is rampant and arena points sell for around 0.8-1g/pt (7-800g netting you 1000-1200 points), and if you can afford it you can buy yourself a 2000 rating for about 3000g. The -hard-to-obtain- (i.e. S3) PvP gear has become generally ubiquitous on our server and I think that Blizzard are finally waking up to the fact that people are generally unhappy with the situation as it stands. Try doing your daily quests on a PvP server when 75% of your opposing faction can literally two shot you until you're wearing S1/2 gear.

In the end unhappy people will not continue to play and Blizzard must see this, thus I presume that this and future patches will provide a band-aid to the situation and hopefully we will see a new PvP gearing mechanic in WotLK. I'm not looking forward to seeing the days of the Grand Marshall grind again, but there has to be a middle ground :)

@Memzer

The new pvp gear mechanic is already being put in place as you'll notice from the posts on this site...i.e. the personal rating to team rating difference stuff

You got banned didn't you?