I was a Seller for 15 years, it has been proven that Auctions starting at 1 dollar actually sell at a higher price. People have no faith in the process anymore, they want more than its worth as a starting price and hope some sucker bites. Granted, I was not selling Pinball machines but moved a lot of big ticket items with the simple Auction method. Greed takes over and bidding wars begin, with constant sniping at the end.
Businesses also use Ebay as free advertising, listing items at astronomical prices but making it very obvious where they can be found away from Ebay. They have no intention of selling through the System.