I think blind auctions would only amount to a bandaid fix though. Other games allow you to see the price of items and such and their economies are generally pretty good. That's not to say that they're "better", but they do work.

I think the main issue in this game is the fact that everyone can be everything. You can max everything, make everything, and sell everything. In XI you could only really max 1 profession, although you could level more on alts. In WoW you had your choice of 2, though your character needed to be leveled as well in order to take them to a useful level. You were somewhat limited, and it helped to keep markets from completely flooded (though XI had this issue, it was from gear never leaving the system).

Unfortunately the gross undercutting we see comes down to an issue of the playerbase, and there's only so much SE can do to fix it. People will always undercut prices into the ground, even knowing that in order to get your item to sell first you need to list it 1 gil lower, not 100,000.