I think that most of the times the traditional,or at least the focus of buying names on message boards like this are missing the real opportunity. I think that the real opportunity in the drops are not from the "traffic names" but instead are in the generic names and the brandable ones.
The problem with traffic names is that they die a slow death, this is not a good investment. A good investment appreciates in time and produces increasing income. I am not saying that traffic names are not a good strategy, but you need to separate out what is an income producer and a good money maker vs. what is an investment.
It is the same as real esate, some people (like myself) buy and fix houses and then sell them: but this is not investing and it will not make you wealthy. All it does (like traffic names) is allow you to earn a high income. In order to get the true wealth in real estate and now domains is not to buy a bunch of traffic names, but to accumulate names that will appreciate exponentially, and hold on to them and lease them out.
Now the advantage of buying and earning your income off traffic names, internet, web developement is that it allows you to become an expert in your investing field, so that you are able to combine your income/job expertise into investment savy, which is extremely valuable/priceless in a field that rewards education and market understanding.
Right now the way I see it, you are lucky that you are able to actually identify the screen names that are bidding regularly and have deep pockets, because i promise you that there is not another market that comes close to the smallness that domains enjoy right now.
If you think domains have reached their peak or have become too expensive, you ain't seen nothing yet.
Bottom line, stop concentrating on the traffic value of names, because the real value is in the name.
Thanks for your time
Scott