The Diablo III blog has been updated with a new post by Wyatt Cheng. In it, Cheng discusses design implementation for the upcoming v1.03 patch.
Here's what the team is working on:
Bridging the item gap so that players don't feel compelled to use the Auction House to find the best gear and equipment. This is accomplished by increasing the drop rates.
A continued look at Legendary items.
Nephalem Difference: Players will no longer be guaranteed multiple rares from bosses conquered. It can stil happen but not necessarily a guarantee.
Making solo and group play as close to the same as possible.
Making Inferno Mode with a more reasonable difficulty curve.
Continued evaluation of death mechanics.
The effect of attack speed
Lowering the cost of gem creation with your blacksmith and jeweler.