Exactly.

The correct approach to the online auction arena would be to allow each person only one bid, which is the max they want to pay. Changing this would require significant effort, and should only be if the bidder made a mistake. Then the winner pays a dollar more than the second-place bid.

This would prevent sniping, or at least make it pointless.

Which is why they won't do it. eBay makes money based on how much the seller gets and sniping, etc. increase the selling price, however unfairly they might do so.