For some little collectibles that my wife likes I still go to eBay auctions occasionally, and for some obsolete items (e.g. old cell phone batteries), but mostly I try to avoid them (or use Buy It Now) for the reasons you cite. My Fujitsu laptop was a special case.
The Wii I got recently was cheaper at a storefront at [link|http://www.express.ebay.com/|http://www.express.ebay.com/] than at concurrent auctions at eBay.
It does appear to be too easy for auctions to be manipulated. Unfortunately, there appears to be little that can be done about it if people are determined...
Cheers,
Scott.