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Both ways are legitimate ways to earn money, but my bet is still on the Dragon Arrow. Your method works great for small amounts of money and is good until you can really bless up your arrow.
My only difficulty is that I don't like to waste time buying and selling and buying and selling. I would much rather be outside adventuring and making money while I walk. 2000 gp is may seem like a lot, but it is still small compared to the 6 million gp I like to keep in stock. I take one dragon arrow and bless the heck out of it. I then go finish a dungeon. Before I know it, I have 50 arrows and I take most of them and put them in inventory and let him keep building. 150 Dragon Arrows, properly blessed is worth quite a lot. I havent kept up in a while because I got so much gold that I put my arrow and bow on my mule character back in the Inn. I tend to have anywhere from 4 - 7 million gold on me at any one time. (And I am a level 148 Zen Master after being a level 133 Assassin, so don't get any ideas about jumping me for my gold.)
Everyone has their own method for getting gold. If it works for you, go for it. I admit that I use that method until I can get the Fletchery and blessed up Dragon Arrow, but for the big gold I go for the arrow making technique.
Knarfling
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