Considering that Oblivion is a single player game and that the glitch is particular and pretty hard to do by accident I don't think it's worth the time to patch out. If you don't want to use it then just don't use it but if someone wants to use it to get around parts of the game they don't enjoy I see no problem with it being in the game.
The part of the game's economy that bugs me is that the highest amount of gold any merchant can buy an item for is 3000 gold yet there are items that have values in 10,000+ gold range. Why have that high of value if you will never be able to sell it for that much?
