I just uploaded a new version which should be fully compatible with 7.0, and updated for changes to the game (Demon Hunters, armor types not changing at level 40, etc). Let me know if you find any problems with it!
Your suggestion is interesting, and I've considered things like it before. I worry that it would be too easy for someone to auto-vendor something they really meant to keep, and is hard to replace, like a piece of Tier 3 or something. Now that we have the new transmog system, they don't need to keep it, but they might want to for sentimental reasons (I still have all my Tier .5 stuff).
***AS OF 7.0.3 THIS ADDON IS NO LONGER BEING MAINTAINED*** Blizzard's new HP/MP tracking bars do almost everything this addon does, so I don't see a purpose in continuing it. If someone would like to take this project over, send me a message and we can work something out. Honestly, I think a better way to go would be to make a new addon that adds customization options to Blizzard's new bar would be the best way to go.
I resist adding features to keep the addon simple and focused and get flak for it. I add the features everyone asks for and get flak for ruining a simple, focused addon. *sigh*
For everyone commenting, the plan is to make the hp bar and runes, etc optional. I just forgot to add that before getting the new version out. No ETA on the fix, not particularly motivated to work on this ATM, especially since the 5.4.0 version works fine.