First of all bidding 37 minutes before the auction ended is hardly what I call "last second" or "sniping" for that matter. The auctioned opened at .99 cents, and two people proxy bid the thing from the opening bid up to $17.75 & $20.99 respectively, and then the last max proxy bidder had the remaining 37 minutes to outbid Nick. But like Dave said some people rather bid that way than baby-sitting the auction in the last 5 minutes. Bid your max and let the chips falls as they may.
Depends on the auction, if it something I want, and there doesn't seem to be a ton of interest in it (aka 0-2 bids during the run) I will wait until the last minute hoping that some people tossed a couple of cheap bids, and I can get it for the next bid increase (or opening price) which is the el cheapo method. If it's a kit with a bunch of bids where people are nickel and diming up the price the entire time I will wait until the last minute because erupting a high priced proxy bidding war just runs the price of the item up days before the auction ends which gives everyone time to consider whether or not they want to bid more. I will toss out my max bid with about 20 seconds left, cause yeah, I don't want the other people to have a chance to bid again. Besides if their proxy bid wasn't high enough to outbid me in the automated raise/call system on eBay they didn't want it as bad as I did anyway. The concept of bid snipping/auction stealing software is no different. Sure it bids at the absolute last possible second, but you still have to set a max bid for it to stop at, and it's not really any different than having the auction staff run your bids doing a phone bid in a live auction. If you get outbid on eBay it's nothing to be annoyed about. You either need to open your wallet further or accept the fact that people have bigger wallets than you do.
With 75k model kits on eBay on any given day the vast majority don't even sell, and that's not taking into account the people who seem to think they're cast in platinum. It's sorta that gag-line the auctioneer on "Storage Wars" says before every auction "Whoever has the most cash in their pocket can win it today!" That's the truth with any auction