What people seem to forget is that vendor mounts and items, dual talent, flying, spelltraining...etc are fixed costs so with "inflation" the newbies are way better off.
With this gold squish only the new players and casuals get shafted, because now they have to sell twice as much materials or honorgems for a fast flying or dual talent, while the rich players and ah goblins even earn money from the squish by playing the ah ( they invested all their gold into materials months ago, and they will resell their stacks after the market stabilises again). Bots wont be affected either since they are "afk farming" gold anyway to their owners, doesnt matter how much since its "free" money anyway, and they can sell the gold for coins as usual since with the squish coin prices for gold drop too.
The only char i have repair mammoth with for example, is a char from before gold squish times, because again the price is fixed but we get our gold halved yearly.
Imagine without the squish you could get to lvl 80 do some bgs and sell a gem for like 5k and insta afford fast flying instead of farming for a week to get it... How is that worse and how is the economy healthier now ?