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).