They may discourage some, but they encourage others, eBid needs more bidders, so end of discussion!
Also, I notice most of those saying get 'rid of' are experienced eBidders - you need to think more like a newbie about this as they are more likely to be attracted by a low starting auction - they might be tempted to bid even though they don't win the item - at least they are out of the starting blocks unharmed.
The reason I don't want to get rid of reserves is the lack of bidders - often an auction will only get the one bid. This means if there is no reserve the seller may lose out and I'm sure there are some buyers who 'prey' on low start auctions with the sole objective of getting something cheap to resell at a higher price - some times on the dark side where I've heard of sellers using eBid for cheap stock.
We all know a 1p or 99p start is more likely to get bids than say a £3.99 start - it encourages bidding - we just need the option of a reserve to avoid sellers getting the feeling of being ripped off.
If you want the site full of BINs remove the reserve option, if you want a mixture of auctions and BINs, leave it as it is.