I actually saw that one on ebay. I am used to seeing items on higher end of the scale at ebay, so nothing really surprises me. I am ok w/ Blazing Star AES cart go for $500 (I wouldn't pay more than $350), but I had to admit that when I saw this, I thought...what the? It's very common.
I agree w/ what others said. Also, take account of how much you want the item. I would like to think that I know the "value" of most item I bid, but sometimes I really bid high--just because I want it right now.
If they want to spend more money, so be it. It's their choice.
And I hate to say this, but in rare circumstances, some people drive prices high for their friends auction--clearly it doesn't look like it, in this case, though.