Well, as a seller on ebay at times, I purposely put the BIN's over what the item is worth. Why? Simply because I hope that some newb will walk on and see this item, get anxious because it's not too much over the usual selling price on ebay and jump at it, netting me an extra $10.
But I do something different with my BIN stuff from what you've described Jason. Once someone puts in the starting bid, my BIN goes away. I just let the auction run that way and see where it goes. If I have a set price in mind, I'll pay for the reserve function.
What I don't get is how you bid to the reserved price. I know there's a way to do that, but I've never bothered to figure it out. It seems to happen with a lot of my auctions and right today it happened with my McFarlane series 1 Patrick Roy repaint. Bang, it's sitting at my reserve price (which, btw, is quite low, but since the bubble has some damage, I only wanted to ensure I didn't lose money on the deal, so the reserve was what I paid for the item in the first place plus the shipping I paid).
As far as ebay being full of jagoffs, well, it's pretty much true, but most of the time (in fact about 99%) of the time, I've been pretty lucky. Not too many unscrupulous sellers I've run into. But I am also very careful. I completely echo Jesse's statements about shipping though. I've paid $10 for shipping and had a bubble envelope come with $1.30 in shipping on it. I accept the cost of the envelope at a grossly inflated value, but no envelope costs $9
As far as shipping costs go, sometimes people have legitimate costs. Those include packing materials. I can't get free tape or free bubble wrap or free peanuts. Now if it comes in a beat up box (those I can get free) stuffed with newspaper, well, that's a whole different story.
Anyhoo, good luck and even if the BIN's remain and are not reached, the seller is obliged to sell to you. I just sold my Stealth Predator for $86. Low final value and my BIN was $105. It's going out the door for $86 no matter how much more I was hoping for. That's the risk you take as a seller.