I'm against this behavior, but I don't think I agree with banning people who are using the AH in a perfectly legitimate manner. They aren't exploiting the game. It's on the dev's to make an AH that functions better. The vast majority of these scams only work because the AH has really stupid sorting bugs/defaults. If it just always defaulted to sorting by the lowest buyout, no one would ever even see these overpriced auctions. The solution is not policing human behavior, it's making an AH that works.
It's ok because it's not an 'exploit', just a 'scam'. Some real strange logic here.