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BD already copys their system so why not just go the whole 9 yards instead of a watered down version of it.

There is nothing original in D2 system. In addition, BD isn't the only game with that item system. "Watered-down"? I won't say. Just because there is a colour to the item it doesn't mean it was "ripped off from D2", agree?
For example, Degrade Quality is new to BD.

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In D2 you were always on the lookout for good treasure and you never knew if a monster would drop a godly rare item. In BD everything past act 2 was a waste of time to even look out. The itmes bought in the battelfields were 2x's better than anything I found in a treasure chest or slain monster.

Yes, but you did get good items on Battlefields, so I see no reason to complain.
Also, have you finished BD?