If you actually haven't used the AH at all, then 17k is decent for dps. I wouldn't try moving past MP0 though, or you'll get your face melted off

In Inferno, it's all about scaling the MP levels to where you're still challenged but not getting surprise sex'd by elites. Try bumping it up incrementally until you're getting pwned, then bump it back down a lower level.
If you really do want to refrain from using the AH, crafting stuff using the 1.0.7 recipes is the best way to get good gear. You can wait for drops, but farming crafting mats and recipes will be better for you. Link below will give you the breakdown on how it works if you don't know.
http://us.battle.net/d3/en/blog/8608455/patch-107-now-live-2-12-2013Of course, getting recipes and mats to drop in MP0 is hit or miss, and you can't tackle higher mps until your dps and defenses are better, so, yeah.