For what it's worth, slim profit margins killed by eBay's increasing fees are what kicked me out of the selling business. My choices were to either stop selling or charge extra handling in an amount equal to my added expense. I stopped.
Some shipping charges are blatant gouging and should be treated as such.
The larger trend, however, is indicative of small sellers pushed to the brink by a lack of profit potential, exacerbated by the economy and eBay's greed. Compare the selection available now to that of, say, 2001; I think more sellers are going to realize there's no wriggle room left and bow out permanently instead of working 20 hours a week for a negative wage.
Stick it to the bad guys though. It's pretty obvious who they are.
