I've written a small essay just for you. Normally I charge for this service, ha ha ha:
I've dealt fairly extensively with RMT sales in video games, so let's give an MMORPG example since MMORPGs are little economic microcosms.
Let's say the game you're playing has a type of cash shop credit that must be purchased with real money, and you want to sell that credit. So you search around, you advertise, etc... You find someone willing to trade some coin for it. (Even though that's bad and we should all feel bad, etc.) They say, "yeah! I'll give you 10,000 golds for $10 worth of credits." If you're a newbie doing this you might take him up on it, but let's say you actually know what you're doing. You know that price is way too low.
So how would you, as a pro, know what that price is? How would you determine the market average of golds to credits ratio? You refer to precedence of trade. At some point in the past, a bunch of people agreed to trade with you at a certain price that one of you suggested. Over time you gained a "feel" for what the right price is by pushing the limits of your pricing to learn what the market will bear. Or maybe your friends were at this long before you were. So you go to your friends and ask them, "what's the normal golds to credits ratio?" Then they refer to their recollection of the precedence of trade and relay that info on to you.
This is exactly the function that a market exchange like MtGox provides, but they do it in a more technical (and centralized) way. People throw up offers and asking prices, and the software calculates an average and spits out a number. That number is ever changing because people will systematically play a market exchange like a stock exchange, which is exactly what's happening with MtGox.
Unfortunately, unlike in an MMORPG, a real life exchange can get DDoS'd and everybody freaks out as though it actually mattered. (It doesn't.) Which is probably an attempt by black hatters to massively profit by buying Bitcoins at an artificially low rate while newbies are selling their coins amidst the panic. Which they can then sell for %300 ~ %400 profit when the price rises again, as anyone with any good sense about them knows the price of Bitcoins will more than just recover.
The only reason this is possible on such a large scale is because, just like in GW2 or WoW, 80% of people are reliant upon the Black Lion Trading Post/Auction House for making any kind of trade and/or determining pricing. If you removed that structure, commerce would collapse in each game temporarily. I know because I've seen it happen before. MtGox has become our de facto auction house, and someone's nuking the trade server.
The good news is that people who know how to trade manually can always revert back to personal exchange and pricing, which has an immediately stabilizing effect on any economy.
One thing I can tell you is that word of mouth and making personal estimations of pricing based upon long term precedence of trade is actually a much more stable method of wealth exchange than is a big auto-exchange like MtGox. Manual exchanging is decentralized networking by its very nature.
In fact, when people make an offering that's significantly higher or lower than what people percieve to be the average range, others will come and warn them of their error. Were MtGox not so dominant, people would be flocking to correct their price error. Why? Because, "Nobody sells at that price. That's ridiculous." Any sales made outside of the average range become discounted due to their mismatch with the previously existing data. They are judged as error unless their frequency of occurrence rises.
The reason that many people don't get this very basic concept is because they've never played an MMORPG that doesn't have an auction house or central market, and, among those, most have never messed with secondary markets either. Having to make deals with people on a personal basis really sets you straight.
The only thing that causes insane price fluctuations like this in a virtual market that isn't totally dependent upon pricing from major exchangers is rapid change in supply. In games, we call this duping. (Or horrible game administration that treats rare items like candy. I won't name any names.) Bitcoins can't be duped, (or administratively mishandled) so remove or decrease reliance upon the centralized exchangers and sanity will quite firmly establish itself. Demand will grow steadily (sometimes it will jump, as with Cyprus) and therefore price will grow steadily due to the scarcity introduced by increased demand for the barely increasing supply of Bitcoins.
Summary: The topic of this thread, integration of Bitcoin as a payment method into a secure, attractive, and ecommerce ready platform, would go a long way toward contributing to the stability of Bitcoin. (And eventually Litecoin.) It would do this by helping firmly establish the precedence of trade in the growing population of Bitcoin users that are growing very sick of MtGox and would rather look to what goods and services Bitcoin can actually buy to determine its value. Me love sticky prices.
I do not expect anyone to read that. That way if someone does, I'll be pleasantly surprised.
On a similar note, I have a fantastic concept for a decentralized currency exchange network that nobody wants to hear about. So I'm not going to talk about it, because in spite of my having enough time and patience to write that epic monologue, I do actually have crap to do. Toodle doo.