eBay has been going this route for a while. I don't see them backing down. I am in agreement that Craigslist is filling the void that eBay used to fill very well. Now it's just a bunch of 'PowerSellers' reselling product they don't even have. It was a nice flea market while it lasted, but they got big $$$ in their eyes and got greedy.
For example, I sold an item for $150, final value fee was $12.35 and paypal took another $4.82. That's a good chunk of the sale when you are the one designing the auction page and putting the items up for sale. All in hope that the buyer isn't going to rip you off by reversing the charges after pretending they never got the item and you can't leave them negative feedback anymore.
There is a need for a new auction site to open that is like eBay used to be.