The thing that bothered me the most about all this is the lag in single player issue. It gets me the most because to have a "fair" loot system and lag-free single player are not incompatible with each other. I've played free-to-play games where the loot system was based on a server-client process where the gameplay is largely detached from that process (each instanced battle is run on a host computer which other players connect to directly, which has it's problems, but in a single-player only environment, is not an issue. You're maintaining a connection to a server (at least nominally), you are ensuring players get a fair enough experience, with no lag.
I may not be the most internet impoverished here (according to the recent study that was posted here, I'm right about average, with little to no dropped connections), but above passwords and pause issues (I've probably played more games without a pause than with) are nothing in comparison to the idea that my ability to succeed in the game is dependent on my ISP not deciding to throttle my speeds because I'm playing during "peak hours".
Always on internet for single player, though, as a whole is dumb. Mind, I only ever played D2 in Bnet, but that's because I never saw the benefit of playing a character that would never see others or join in with friends. But requiring everyone to be online really excludes a lot of situations outside of the "sitting at home" situation. Well, glad I got the laptop for not Diablo reasons, huh.