I don't disagree. The best approach is to always put your maximum bid in. But human nature plays a big part in auctions, and I think ebay should note this.

It seems that most people, given 3 hours to think about and consider the regret they would feel if they didn't get what they are bidding on, would usually convince themselves to skip a coffee and add another five dollars to their bid.

you are totally right, but humans are far from rational.