The thing of it is, with an investment of time, you can undercut down to just 1 gil and still "profit" because there are no third-party supply chain requirements for this game. You can literally supply every part of an item yourself from the mats to the crystals, and there is an unlimited supply of everything. So, the only value an item has is what sellers choose to list it for and what the market will bear in terms of speed.

A popular item I sell on the market generally goes for about 5-6k. Undercutting made it a rather unprofitable item, and so the market dried up for a day. I "reset" the price by listing the item at 12k. A few people came on and undercut me by a few gil, but the item generally sold. Thing of it is, the sell rate was probably half of what it was. So, twice the price but half the speed means my "profit" is the same. Because of the volatility of the market and the constant undercutting by larger-than-necessary amounts, the price quickly dropped back to the 5-6k average. It's too bad, as I was curious to see if the speed would pick up with enough sales to establish a longer history at the higher price, but odds are that's unlikely to happen given the way this game's economy functions.

Frankly, I don't see it changing for the better any time soon.