Yeah, its a bit of a bummer, but surely Blizzard will do something about it right? Its in their best interest to have worthwhile loot to strive for because of the real money auction house. Heres to hoping.
@MildMolasses: I could be totally wrong here, I aint no video game making magician, but I'm under the impression that a lot of the calculations to do with the mechanics of the game are done server side. By making an offline version of the game all these calculations would have to be included in the client and as such could be reverse engineered by some nefarious individuals and totally mess up the online stuff as a result much like what happened with D2. Whilst I am totally for an offline way to play the game (currently the eu servers have been down for like 4 hours...) I kind of can see why Blizzard wants to hold the keys to everything.