It does seem they are going in the right direction after some toxic individuals and PR disasters like Bashiok and Wilson were removed, but the game itself is just fundamentally flawed. Which is sad when you realize a decade old game (that they could've "cheated" on to see how it's done) completely outdid it in both quality and complexity.
The loot 2.0 thing sounds good on paper but when you compare it to D2, D2's item system is simply superior and more fun to play with. So D3's item system would require a complete overhaul to reach the same quality.
They had the perfect example right there but didn't focus on the factors that made D2 fun to play. In the end we got an unfinished product with a significant amount of promised features cut out with a disastrous launch. Reusing the Battle.net 2.0 system, being unprepared for the server load, hacking issues, severe bugs and game balance issues, and so on.
And they panicked after the negative reception at start but didn't know how to fix it. It felt to me that they didn't have enough people who actually knew what the fundamental issues plaguing the game were, or they didn't listen to them.
So in the end we got drastic changes every few weeks/months that completely turned the gameplay around, simply because they didn't know what was "wrong" with the game so they kept making these 180 degree changes without people knowing why. Most of the changes/new features introduced later when the game already tanked were old D2 features, those were the few things that were palatable.
As for D2, you don't reinvent the wheel every time you design a new car. I played D1 and D2 from launch, and personally I felt D2 was already an excellent game that I spent countless hours on. The expansion did make it significantly better, because it improved on a good thing, but D2 by itself was already a masterpiece.
Another thing that left a sour taste in my mouth were their PR reps, who were constantly contradicting each other or themselves even and were not being transparent with their customer base, coupled with Wilson and others dropping PR bombs into an already agitated crowd. And the game felt like a cheap low quality product to me, made mostly to benefit from the RMAH profits. Blizz just lost all credibility in my eyes because of that, so I'll definitely not be supporting them with further patronage.
It's not the fact that they made a "bad game" that gets to me since erring is simply being human, it's the utter greed shining through their actions.
