Someone said if I post it on selling for an auction and I don't end up selling it I could get hit with a penalty? Is that true? The "Seller's Rights" seems to say otherwise, but just wondering.
I don't know who tell you that but there are no penalty. You are free to do what ever you want with your item, you can post them on Legacy and decide to sell them in game, or decide to not sell them at all, or sell them to an offer that isn't the highest or what ever.
The only penalty is that some people might remember it and will be more hesitant to trade with you in the future.
The issue I'm running into is what's the point of selling it for currency if there's not much I'm really looking for in the game? I could sell it to get a lot of arms or stuff, but I'm not sure what I would then spend that on. For me, trading has always been a way to get more interesting, powerful, and rarer items. I'm unsure exactly what I'd want to sell or trade it for to advance on that path
I know some people who have traded GW1 items for GW2 gold or Oldschool Runescape currency. But those kind of trade aren't allowed on Legacy as far as I know (and there is always some risk involved as someone has to go first).
In the end if you are not really attached to the item and have no use for it you should consider selling it. Maybe you could use the arms and ecto down the line and it's always good to know your item ends up part of a bigger collection and you have made another collector happy.