kinda late to this discussion and cant be bothered to read most the posts arguing it all.
from my time as a crafter and selling things on the mb I can happily say I will undercut everyone, why you ask.? well simple I want the sale, and so long as im making gil on what I sell that is fine by me. if it gets so low that the profit is not there then ill bow out or let others sell there stuff, the benefit to me and anyone else doing it is that I then control the market for awhile ad can lists things at a more fair price, as in I make profit but not so much the things don't sell.
if your goal is to get 1mil from each sale then your doing something wrong.. not the making the gil, thats fine, but what is going to happen is they don't sell so fast and then the mats you need to make those items become scarcer because they too don't sell so fast, which in turn drives prices up. now eventually this will be corrected because people see the high value and its mass farmed for quick gil, but it would be better if the prices stayed somewhat stable.. they never will though.
as for the whole subject of massive undercuts, well if its being listed at 1mil and you make it for 20k then guess what its getting undercut massively, if its made for 800k and your selling at 1mil its just because someone got some cheaper or potentially free mats and so can go much lower than you, if you don't like the newer price point sell off move on and come back when the price is back to what you thing the price should be.
a good example is that awhile ago levin barding was selling at its normal value on my server at 500k each, this price had been steady for quite awhile, average profit on it was 150k, then for some reason people started farming ramuh a lot more this allowed me to make them at 150k each, so I made 10.. adding so many to the market is going to cause ripples so what I did was list all 10 at 250k each.. they all sold in a matter of hours, I made 1mil gil in the venture and the market stayed relatively stable, yeah some people undercut me but I had my price and knew they would sell, so sometimes when you see those massive undercuts its just because people now have the means to do it.. best to let them sell of quickly and wait it out.
lessen about the mb that any long term crafter has learned is that if you price fair you'll sell more and hence make more, you'll also maintain the mb in other ways by being more fair rather than gouging every last gil you can. you have to remember most people don't even have 500k never mind 1mil or 100mil

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