Personally I think incorporating seller reputation into the Best Match search is a great idea (whether or not it works great in practice remains to be seen). I’ve long advocated showing the seller’s feedback percentage and score in the search results next to an item. If I’m trying to buy a new laptop or PDA (something that costs a substantial amount) I am simply not going to buy it from someone with (for example) 96.2% positive or from someone with a total feedback score of 116. I don’t think I am unusual in that, and so it’s a waste of my time to click a dozen links to auctions sold by low/bad feedback sellers. With Best Match, supposedly, I won’t waste my time anymore. It would be better if they just showed the seller’s feedback and score in the search results, but this should work just as well.

This system, in my case, would save me time when trying to buy a laptop or PDA or anything else that costs a lot, and would keep me from getting frustrated and just going to a local store or (more likely) a reputable website that sells the same product(s). Since that sale would be made on eBay instead of buy.com, eBay would make more money, not less.

And there are a certain, not insignificant, amount of spendy eBay users who are web-illiterate, who, once defrauded on eBay, will no longer shop on eBay. Such users basically search and blindly click on the first link that shows up (like a drunk staggering and blundering his way up to a bar, heeding nothing in his path), so it is very wise of eBay to “funnel” (as you say) those users to legitimate sellers.