Ridiculous price aside, doesn't eBay forbid the exchange of digital goods like online game items, electronic currency, etc?
Nope. Not as far as I can tell.
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http://pages.ebay.com/help/policies/items-ov.html#prohibited Counterfeit currency they prohibit, sure. Copyrighted items where you don't have the right to transfer, sure that's prohibited.
But digital goods (images, audio, etc) are not prohibited, online games not prohibited.
They allow gift cards to be sold, but only one at a time.
Now if you are asking about the ability to use PayPal to pay for a bitcoin sold thorugh eBay, that's an entirely different issue.
Also, eBay is almost exclusively run on PayPal now. Are BTC sellers just risking it for the sake of the price gouging opportunity?
Here's the latest "unhappy" seller that was accepting PayPal for purchase of bitcoins through eBay:
Paypal just bent me over -
http://bitcointalk.org/index.php?topic=120441.0