I don't see any bikes at that price on ebay.
Amen. Craigslist here in metro Detroit is nothing but used Walmart bikes for cheap. Something worthwhile is pretty darn rare.
E-bay has two major problems. For starters, there is always somebody, someplace willing to pay a ridiculous sum of money for some old crappy bike. I've watched far too many auctions that I was interested in climb to insane levels in the last minute. I'm sorry, but $600 for a lugged steel frame touring bike that cost $500 new four years ago is kind of nuts.
The other problem with e-bay is that shipping bicycles is crazy expensive since they are not super great shapes for packaging. Even if you score a nice $150 bike on e-bay (good luck!) now you have to add another $60 to get it to your door.
I'm not buying Walmart bikes, but that's because I can afford not to. I'm not going to knock Cig because he decided to avoid surfing e-bay for 8 months only to get outbid on a couple dozen bikes that he could find in his size that were not Walmart crap to begin with.