One danger of a strategy like that is that potential sellers might get the impression that sales were forced on buyers as it was the only way to get people to buy on the site.
My own opinion is that sellers do find eBid, but as has been pointed out in this and other threads in the past, they leave due to lack of sales. While we all know that sales can be made many sellers never visit the forums or have any way of knowing the best way to make the sales. A guide when they join could help at least some of these sellers, or even just advice to look in on the forums.
As for the fee structure I am inclined to agree that something could be done to tidy things up. As a start I would either get rid of or increase the 24 hour upgrade offer, ideally by making the offer price the advertised price. I would also like to see the gallery image free for all listings.