MTX is mictrotransactions, such as bonds or treasure hunter. Anything that makes you spend IRL money for in-game gain. Continuing down the road of what is good MTX, lets talk specific examples today. First and foremost is League of Legends, the most popular game out not just right now, but for the last few years. LoL is a F2P game, yet has maintained its AAA status in terms of graphics and support for years, all without ever selling power or abusive MTX.
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I think the people against cosmetic DLC / MTX are against it because they feel it's stuff that would've been included in the base game package years ago. There is a point to be made there, but the number of cosmetics and the support on some of the more successful games has eclipsed what the older games would've included. I'm totally fine with that kind of micro-transaction.