Well that's the beauty of the blockchain. You just have a contract in place saying that weapons and armor can only get X% more powerful each year, so that way there is a fixed amount of inflation.
Cryptokitties is a testament to how pathetic the blockchain is as a platform for complicated games. The fact that possessing a hash representing the genome of a cat is enough to qualify as a game is laughable. I've played lots of highly simplified games that involved breeding animals and optimizing for specific traits and what cryptokitties offered was just one mechanic in an entire system consisting of dozens of interacting mechanics and MMOs like WOW go way beyond a dozen mechanics.
I don't think anyone is arguing that DLT, as it currently stands, is a complete piece of shit. But that doesn't mean that no progress will be made over the next 30 years. Especially since registering and tracking virtual items is pretty much the perfect use case for DLT.
You're too deep, there isn't any way we can convince you of the foolishness you're spouting.
Volatility.
Since I can see it coming, the fact that real-world assets have a non-zero volatility does not mean that the level of volatility in virtual assets isn't a difference in quality and not merely quantity.
What happens to your WoW diamond's investments when the next Wow expansion brings out UltraDiamonds and the latest shiny hot BiggerNumbersThanLastTime weapons and armor can only be bought with those? Again, the fact that this occasionally happens in the real world still has nothing with the routine nature of this sort of thing in the virtual.
Only an idiot would invest in Wow diamonds. Put your money into buying stock in the company running WoW instead.