One problem with sniping is you always run the risk of the net failing you. All sorts of problems can keep your last second bid from getting in in time or at all.

The problem with just bidding what you're willing to pay and being done with it is, others are apt to bid more if you've already indicated your perception of the item's value, especially if you're a known "chip expert." EBay is a lot like poker. By laying low and sniping, you don't play your hand too early.

Andy got it right. For a good, fair, honest auction, the 5 minute rule would be the better way to go. Now we just have to convince eBay.