Well, with the barrier to entry raising every day, I find it hard to classify this game as "Free to play", when it costs the amount of CR to buy 100 CE, which will leave you no money to upgrade your equipment. And the cost of CE is sure to inflate. Meaning it's not crazy to say that it will take 400 En to gather enough CR to buy 100 CE. Now, I'm no expert on economics, but I'm pretty sure people will be unwilling to pay that (for obvious reasons), but when a new character who can only run T1 enters the game, they will be unable to afford the cost of CE, which will be priced with players who run T2/T3 in mind.
Of course there will be a point at which CE will simply not sell above a certain price, and that will be dictated by how much CR you can earn by using 100 CE, but that will affect people trying to get into the game. They will either be forced to stick to their daily Mist, or use real money to buy CE. This will hinder the growth of the game, and hurt Three Rings.
My suggestion is that Three Rings locks in an exchange rate (3000 CR to 100 CE for example), which isn't player run. Therefore, everyone gets a flat price from both sides, and the economy is stabilized.
(Sorry if this has made no sense. I'm running on little sleep, and a lot of caffeine. So you can expect incomplete thoughts/sentences)
Yes, it was a great idea. The game IS free to play, you just have to accept some limitations on what that means, exactly -- free to play for an hour or two a day.
If you don't like that system, check out some of the other so-called "free" MMOs out there, the ones that never let you progress beyond level 10, for example, or never let you leave the same four or five areas as a free player.
The way this system is set up, the price of CE will continue to rise on the free market until more people eventually are forced to come to a point where they can't just perpetually play the game without helping the company support itself. More people will hit that breaking point in which they'll decide to pitch in the almost laughably small amount of money that's being asked for in order to get weeks and weeks worth of CE. Then, the price will start to drop again. It follows the rules of supply and demand, just like any other commodity.
A locked exchange rate means the company will hemorrhage money -- you essentially want to make it possible for you to play as much as you like without paying a dime. Where's the incentive to actually pay for the game? What do you suggest Three Rings makes a profit off of, CRAFTING? :/
Not enough. The servers will shut off in weeks, and the game will bankrupt.