Personally, I try to charge about $2 extra in my "shipping" costs on items I sell on eBay just to cover a part of my fees. As eBay keeps raising fees, I understand the need to pass the buck to the customer (why do we have sales tax, after all?). But extreme price gouging on shipping is pretty despicable, IMO. Apart from deceiving customers, eBay does deserve something for the service it provides, and until a real competitor shows up, if you don't like the fees, then I say, don't list auctions. EBay sucks, but sellers shouldn't screw them over just because eBay screws sellers over.
So you accurately pay federal taxes on all the stuff you sell on Ebay, right? Just want to make sure.
Personally, I don't view someone selling something at $50 and charging $50 shipping any differently than them selling at $100 with free shipping. If it costs me $100, it costs me $100. End of story. I've tried to work with Ebay on a few instances where sellers were charging ridiculous $25+ shipping for loose figs that shouldn't cost more than a couple of bucks. I even pointed out that the sellers were trying to avoid paying Ebay fees and Ebay did NOTHING about it. I'd rather be putting the dollars back into the sellers's hands than lining Ebay's pockets anyway.