MUDflation, Legal Action To Hinder MMO Trading?

Thanks to Wired News for its article discussing the pitfalls which may face virtual item and currency trading in MMORPGs. The piece discusses previously covered sites such as the Gaming Open Market, whose founder ruminates on possible issues with TOS violations: "We're getting to the point where we're getting a reasonable amount of attention. I'm sort of afraid that the game companies are going to step in and terminate my accounts because we're violating the terms of service." Another commentator also worries about long-term dangers of virtual item/currency trading, "...because games like Ultima Online and EverQuest have flaws that allow cheaters to duplicate currency, and that ultimately leads to what Hunter calls 'MUDflation,' short for inflation in a multiple-user dimension."