@adolescent
I do not know why I am making an effort to defend sniping...frankly, the more people that bid incorrectly the better for me :-D
Very true, sniping doesn't always result in a cheaper price if you are dealing with a bidder who has bid what they really truly want to pay for an item. But like TjLaZer said, bidders seem to get this "I've gotta win!" attitude when they are outbid. Suddenly the item is worth more to them, and the price goes up. Sniping gets around that, too.
So yes it doesn't work all the time, but on balance I would say it is mostly beneficial for me personally :-)