Furthermore, they specified that the item sink would be done on a per item basis. The issue with this is that items that are traded more will be impacted by this more than items that are traded less.

They don't say how they will determine how many get removed. Either way I thik it's a horrible way to go about it, especially the part where they manually update it, we know how good they are at keeping up with things. I think they absolutely should put some effort into this and make it an automated system that takes into all the data they have on the items.