Ok, I've had WAY too much caffeine so please bear with me.
Some players don't like the Market because it can be manipulated. Some players love the Market for the same reason. I don't like vendoring because it essentially destroys the item sold, removing it from the game forever.
But why? (Hold on...I'll get there...)
What if the VENDORS were represented on the MARKET?
A vendor is just a guy who buys and sells items at a set price right? He buys and sells to the players in his shop at a set price. But what if the Vendors then turned around and SOLD their surplus at the Market?
Here's how it would work (in my fevered imagination): A Vendor has an infinite amount of stuff to sell at fixed prices. However anything that he BUYS he then turns around and sells it on the Market. It appears on the Market as a regular sale just like any other player item. The price asked for would be determined by the price the item cost the Vendor and a random factor to modify the price. This last bit adds a certain amount of chance to the Market and prevents all of the prices from flat-lining. The random price would be anywhere from 110% of the purchased price to 1000%.
Now here's the kicker: If the Devs thought that the Market was too unstable then they could adjust the 'Vendor Factor' down, thus normalizing prices.
So if I get a (to me) useless drop I can go to a Vendor and sell it for $100.00 or throw it on the Market. But the Market price is below $100.00 and I have time to waste so off I go to the Vendor. I sell him my junk at $100.00 each. Then the game takes that junk and throws it on the Market for anywhere from 110-1000 bucks. This keeps most items in circulation. No there will still be some players who sell their stuff lower just because it's fast and easy so the floor price won't be $110.00. There will also be the occasional 'OMG gotta have it NOW!' buyer so there will still be chances to sell over price. The Vandor Factor insures that the prices on the Market will still average higher than the Vendor purchase price (thus keeping the Market interesting).
Basically the Vendors join the Market but they never BUY, just SELL. The prices can still fluctuate (if there are 20 Vendors and 10,000 players the Vendor portion of the Market will be very small) but now not was wildly. Plus there will be some items that are rare drops that NEVER get sold to the Vendor and will be strictly in the domain of the players.
Whew! Sorry...off now. Talk amongst yourselves...
I remember when Star Wars was cool...a long, long time ago...