Do you wonder how many more actual sellers, that have actually registered their domains, would be successful if such listings were prohibited? And, if those frontrunning sellers, trying to pawn off unregistered domains, were permanently banned from the auction site?
No. I'm surprised the auction site even allows this.
I was also very puzzled by some of the domain listings I saw on a major auction site, where sellers were trying to sell a domain name that "might" become available. The implication was that they didn't even own it, but were perhaps...