The problem is, eBay is a place where everyone and anyone can log on from anywhere and buy stuff. Yes some stuff sells for crazy prices, but the reality is, it's not only you who has an eye on it, it's everyone else too.
So the seller starts off at a low price and then a bidding war commences. The item is bid up to what some consider astronomical for it's value. Might not be good for the buyer but the seller is loving it. Sure it might piss you off, but someone was and is willing to pay that much when they clicked the bid button.
And if you think eBay is bad...you ever watch Barrett-Jackson? Granted it's a classic car auction, but you'll see classic american iron from the 50's, 60's and even into the 70's that sold new for not more than $5k....hitting the mid to upper 5 digits and sometimes even into the 6 digit range....for a trailer queen but doesn't handle, stop, accelerate or have any of the safety features implemented in today's cars....most people would think you were totally brain dead to pay the kind of cash for those cars, especially to just sit in your garage....but to the guy that's buying them, well it was obviously worth it to him to pay what he paid.
As for sniper bidding, I do agree with you on that. I'll sniper bid as much as I can, but unlike some, I do have a life outside of the internet and cannot/will not sit for hours on end watching an auction....so I'll post the max I'm willing to pay for said item. If I win, then I win. If I get outbid and lose, oh well.
