What happens when everyone uses esnipe for the same auction?

I was under the impression that ebay had a "going going gone" period at the end of each auction, so that if there was a flurry of activity at the end, it would extend the end time of the auction until everyone finished getting all of their bids in.

Of course, I haven't bid on anything in a while, so they might have changed this since the last time I bid. But if it's still in effect, then all that esnipe is doing is adding another layer to the transaction, and everyone hanging around at the end of the auction (whether in-person or via esnipe) is still limited by the actual maximum price they're willing to pay.