Uh, no, there's nothing wrong with it.
First of all, they are NOT selling them as factory 1/1s, unlike the people cutting patches out of cards and putting in better ones and calling them 1/1s. I have never seen anyone cut a card and claim it was done by the factory.
Second, if they ever did, it wouldn't take any more than two eBay reports before that person was shut down completely.
Three, even if the above weren't true, I have never seen anyone sell one of these cards for anything more than .99 with a $5 BIN. That's not "preying on the newbies," anyone with enough sense to figure out how to register an eBay account is already armed with the intelligence it takes to realize that you cannot buy a 1/1 with a $5 BIN ever, under any circumstances, if it's a factory-made 1/1.
Fourth, lighten up. I have to put up with seeing Pacific garbage sold on eBay. I have to put up with seeing people title spam 1/1 on a card #ed/2000. I have to put up with hundreds of people selling "lots" for $3 each where you get a random assortment of commons with a chance at a Gretzky RC. I have to put up with people selling pack searching secrets. I have to put up with people selling their searched packs. You don't see me posting and whining about it everytime they do it, and you don't see me ranting and raving about how horrible it is that they do it.
That's just the nature of the beast. Go to a card show and you will see people with dice games, or keno-type games where you pay $3 for a roll or spin where you can win fabulous "prizes" such as a Manny Legace parallel #ed/300. Or people selling plaques with players' names and an 8x10 for $50 each.
It's the same thing. Lighten up. There's nothing you can do about it, and those homemade 1/1s are no worse than anything listed above.
