Here is what I see on both sides of the coin.
(TL

R Browsers - See the bottom of the post)
Cry-Baby #1
"WAAHH, I can't play because there's no option for offline mode!"
"I paid for this game with hard earned money and I deserve to play it whenever I want, however I want!"
Cry-Baby #2
"Online is the answer to hackers, cheaters, dupers. So shut up and play!"
"And your banking account which has more money in it is directly connected to Blizzard, and this is their answer for your protection!"
Ok, seriously. Both sides have legitimate arguments for a debate. But quit all of your belly-aching and whining. I don't care what side of the coin your on and lets actually break this down.
Offline Play complainers.
IF YOU WERE BLIZZARD, How would you make it OFFLINE AVAILABLE?
- First of all, the Character Information would have to be stored locally on the computer. So your first step would be to somehow encrypt the player files, to prevent hackers from finding ways to cheat the system. This means, being able to identify when a HEX-Code Editor has been used on the file or other similar means.
- HOWEVER, preventing Character Hacks would ONLY come into play when the character goes ONLINE. So now the real problem for the original question comes into play. What can BLIZZARD do to identify what character files have been hacked or not when the character is registered to be played online?
My Answer:
OFFLINE Play would be made available by having the player CHOOSE during CHARACTER CREATION whether the Character is OFFLINE or ONLINE. Now, in order to SELECT "Online" the player MUST be ONLINE at the time, AND LOGGED INTO BATTLE.NET. What this will then do is your ONLINE Character Files would then be SAVED on the BLIZZARD Servers. This way there is NO possibility for an OFFLINE character to go ONLINE. Hackers, Cheaters, and Modders can all then enjoy what it is they do, to OFFLINE characters. But when it comes to utilizing ANYTHING that requires the internet, you have to go through your ONLINE account.
I have systematically SOLVED BOTH ISSUES.
"BUT I WANNA USE MY OFFLINE LVL 69 CHARACTER, ONLINE!" - Random Crybaby.
Look, if that were possible than you might as well say Good Bye to BOTH auction houses, and if anyone out there was planning on trying to make any real income from the RMAH. Sorry, You are now shit-out-of-luck because of this Random Crybaby.
Look by allowing Character Files that will eventually be hacked, cracked, and modded to go online and utilize the Online Functions. You are essentially allowing the dishonest people in the world to flood the online community with the "Best" End Game Equipment, Gold, Forging Items, etc. We would all be pissing Gold by the MILLIONS within a week. While this may be what some out there want, I'm willing to bet a GREAT deal more do NOT want that.
I've been anticipating this game just as long as everyone else who grew up playing Diablo 1, Hellfire, Diablo 2 & Lord of Destruction. To the guys who are already walking around with maxed out characters, congratulations! You just spent 1 - 1.5 weeks playing a game that took 12 YEARS to produce. I hope you enjoyed it. Because by MY MATH, if the Diablo Series continues down this same release pattern, Diablo 4 won't be released until ... 2040? Hope you enjoyed the game!
So Online play with Offline Characters is just not possible. HOWEVER, and this idea did just occur to me now, When a Character is selected to be an Offline Character, they get the option to be played via LAN with Family and Friends. Making it "Possible" to experience that "Multi-Player" Feeling without "tainting" the Online Community. Because Online Characters would not need to be made available for LAN, since those Character Files are kept on the Blizzard Servers. AND Since the Offline Character Files are saved locally on the machine, there's no need for further "protection" against such possibilities.
Now about the Online Community. Ok, yes you guys are correct when you talk about how the "Always Online DRM" is for your (As in you, the consumer's) protection. Especially when you start talking about the Real Money Auction House. I don't like my Credit Card attached to websites. I usually use Cash Cards, that I have to refill. This way if the Website/Servers get hacked, there's no connection between that website or server and my banking account. I don't even have my information on my PS3, I just buy PSN Gift Cards and call it good. So, believe me when I say, yes. I understand the need for the "protection". But here's something for you to wrap your "fragile wittle minds" around.
Gold Auction House. When Playing with your Online Character, EVERYONE has the option to use the Gold Auction House. Using the In-Game Gold as the means to buy and sell items in an Auction House. HOWEVER, only those accounts who have AUTHENTICATORS attached to them can access the Real Money Auction House. The purpose for this is two-fold. First of all, when you go to post an item in the Auction House OR purchase an item, it will ask you to CONFIRM YOUR ACCOUNT by entering in your Authenticator Code. This ensures that NO ONE ELSE can have access to the REAL WORLD Money you have uploaded into your account EXCEPT YOU! Second, When transferring the funds To or From your Blizzard Account, you have to yet again, enter in you Authenticator Code. Now, If the Diablo 3 Servers get hacked, No One can use the money you have uploaded to your account in the Auction House AND They can not transfer the money to some other account, stealing your money from you, because YOU have your Authenticator.
"But Authenticators cost money!"
Yes and No. If you think $4.99 (or is it $7.99...) is too much money to be spending for more than enough sufficient protection, then you are dumber than my rock collection. First of all, to those with Smartphones, the Blizzard Authenticator is FREE. F. R. Double-E, FREE. Or you can get the Key Chain, doesn't matter. Especially when you start looking at what the FEES are for USING the RMAH.
FEE: $1.00 (USD) to POST Equipment
FEE: $1.00 (USD) IF the Equipment Sells
FEE: 15% of Sell Price for Non-Equipment Items
FEE: 15% of Total Money Transferred to a Checking Institution
This means that for you to make ANY profit off of Equipment, It HAS to be sold at a MINIMUM of $2.01. And you will make a penny profit (literally). And 15%... For EVERY DOLLAR you put up, Blizzard gets 15 Cents of that, giving you an 85 cent profit. And then, to Transfer that 85 cents to your Checking Account they will take another 13 (12.75) cents, putting 72 cents into your account. FURTHERMORE, If this becomes a Source of Income, these Fee's that you've paid to Blizzard, do NOT count towards paying your State and Federal Taxes. So now you've lost even more money out of that $1.00 Non-Equipment Sell.
So if my math stands correct, you most likely will not see anything in the RMAH for less than $3.00, which is basically the price of the Key Chain Authenticator to begin with. If FREE is just too hard for you to get. (Some people don't have Smartphones, so the Key Chain version is perfectly suitable as a substitute.)
Now you can have those who want to play the game Offline or via LAN, those who want to hack and crack and mod the game. And Online Players, but who choose not to use the RMAH. Or those who choose to play Online and use the RMAH. And everyone can QUIT whining, and let me get back to playing the game!
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TL

R Browsers,
Offline Character Save Files should be saved locally on the Machine and are only available to be played Offline or via LAN Connections.
Online Character Save Files are saved on the Blizzard Servers, and only the Online Characters can access both versions of the Auction House, with those who want to use the Real Money Auction House only being those accounts who have an Authenticator attached to their account.