I've sold on ebay for many years now and have done it for the auction gallery, I've worked for. I cant explain why people pay so much for crap, but I can explain the reason why they pick the militaria category....ebay doesnt offer every category, and often hide categories in other not so easily found places. Also people are ignorant and just dont know better. Anyone knowingly selling a copy as real should be hung by their toes, but my suggestion is to ignore the category. Being a seasoned seller, I have had to use categories that were not entirely accurate as there was nothing better. I always will tell the whole truth in the listing, but sometimes have had to use misleading categories. Ebay will never solve the problem because of one lacking principle...they do not collect enough personal information to differentiate one ebay name from another, and allow people to have multiple accounts. I have had several over the years (all have 100%!). Thus, in this instance the ad was removed and the seller suspended. All the seller needs to do is open another account (with a different email address and another credit card) and they are up and running. They've made advances to stop it by tracking IP address and linking accounts this way, but if the theif has a dialup account or DSL and resets their router, they get a new ip address each time. Also with credit card companies, you can get a special credit card number for one use transactions. They issue a "pseudo number" for one use. The theif gets alot on one good card and is able to open many accounts, each with their own number but going to one account. Since they pack up shop(or gets kicked off) before the bill hits and the CC# is invalid, its hard to trace. Lastly, ebay no longer allows free email accounts like yahoo, hotmail, gmail, etc...but there are thousands of other free ones they do allow so its only a formality for a crummy seller. I have sold nearly 15,000 items in the past 5 years both home and at work, and have also conducted over 100 ebaylive auctions. I've pretty much seen it all and learned the loopholes by being taken advantage of. Its a sorry time we live in, but the best advice I can give is never buy from someone less than 90 days old, or with less than 10 feedback (and no negatives). Also dont ever pay for an international item with western union or you'll just kiss your payment good bye. Read each description carefully, and ask all questions before bidding . Finally, pay with a credit card or with a credit card through paypal. If you get screwed, paypal may (and I mean MAY protect you), but your CC should regardless. As for categories, pay no attention and focus on the description of the item...if you smell something fishy, walk away, you'll see another on ebay next week that will be just as good a deal and probably not be fishy!
my 2 cents.