Yes, this would make sense, but Blizzard is the one who gave yellow items the name 'rare.' The truly unique items (yellow text) should have been properly called 'unique' and the gold texted items should've been the ones titled 'rare.'
As for my post title, I'm just assuming that Blizzard is going to pick up D3 where LOD left off. There isn't really enough information out there yet to be sure, but I think it's a safe assumption that the best items in the game will be uniques (gold text) and rune words - items that everyone can match identically with other players, limiting the exclusiveness of your character.
My guess is it will be like LOD and World of Warcraft, where if you know someone's class and level (time played), you'll be able to guess exactly what gear they have. Most people probably don't have a problem with that, but when I put a lot of time into a game, I like to stand out from the rest of the pack, not just be another clone with the same rune words and item setups.
As an example for those who don't understand the way it worked in classic, here's a collection of battle hammers I had:
http://yfrog.com/05vendalhammersp
It took an unbelievable amount of time and effort, but when I was done collecting, I had an array of items that nobody else could ever duplicate (without cheating of course), and they were some of the best items in the game. These are the kind of items that classic was built off of, and there weren't any 400% enhanced damage uniques or rune words to make these near-perfect modded, one of a kind rares obsolete.