You have to be logged out of the game to use it on that character. You also need to be logged out of the AH to log in to WoW with the character. I'm not 100% sure if you can be browing the AH while playing a separate character on the same WoW account though.
The transactions/day limit does seem like it will prevent most abuse, as if you have some automated script to scan/buy/sell it won't run very long before hitting the cap. You also need to have a character that actually shows up on the armory in order to use it (level 10+).
For transferring via Neutral AH, it's not really an issue for boxers since we can list on one account and buyout almost instantly on the second account. Besides, with Neutral AH's in multiple places (BB, Gadgetzan, Everlook... maybe Ratchet?) it's not that easy to check and see if anyone is physically camping them either. I'm not sure if they have throttling to how fast you can perform searches through the web, but I wouldn't be surprised if they did.
I'm not really sure what kind of advantage this gives anyone. You can have WoW open in the background 24/7, or you can leave WoW closed and check it via a browser/phone. The only 'advantages' I think of would be you can list directly from your bank/mailbox, it saves a few trips from the AH -> mailbox, and you don't have to run to a major city. Most people I know rarely use the AH anyway other than buying gems/enchants.
It's bnet account-wide, so a single $3 fee in addition to 5x subscriptions isn't much at all. You can easily change between characters, servers, and wow accounts. Doesn't require logging out/in and running to a city. I don't see myself using it every day and it's definitely not a replacement for Auctioneer, unless someone writes a web-based Auctioneer frontend to the web AH...
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