Griftah has now been exiled to the outskirts of Shattrath in Patch 2.2.
Players complained loudly on the forums after realizing they paid over 30 gold for an amulet that allowed them to resurrect when they died and were not mollified when informed that they should have shown a bit more caution before buying items from a character named after another word for con artist. Everyone (including me) assumed that Griftah was being exiled from Shattrath because of these complaints.
His creator, World Designer Kisirani, says otherwise. Though we don't know how the story is going to unfold, Kisirani says that Griftah is kind of a progressive content guinea pig. He explains:
It's a shame you're unwilling to believe what is, in essence, the truth -- that Griftah has been a small foray in progressive content as we gauge certain things.