Oooor... you can go and check the absurd prices at which 1000x Sacks of Gems are going. The market is definitely broken, just not quite as you think :P
I know, it was what i've said, people with those gems but that aren't aiming for the auction games will flood the market, that's why you see those bags for 0.5$.
People with lvl 100 (or whatever) have tons of those garbage so they already convert it and have enough gems for the auction house, they probably are stocking on those dirty cheap gems for the booster packs.
Basically the gems are devalued, people will use the gems for booster packs and cards will flood the market, again, devaluing the cards price (more that they are now).
I don't know, it feels pointless, there was this Christmas where Steam had this system with games or coal, i think that was better than this system.