Hi,
I think the way the system is currently designed allows for more transparency within the economy and that is a good thing. You are going to have under-cutters in this system but you will have them in your bid system in FFXI as well. To demonstrate, lets use the following example (please note the numbers are exaggerated to show variance but the concepts behind still remain). Since we are using FFXI as an example, I'll use an item from that game (Krakken Club). Lets have 4 sellers named Larry, Curly, Mo, and Fred (Fred will play the part of the evil under-cutter). Based on the system can see that the Krakken Club is being sold for at a consistent basis of say 1mm gil the last 8 times. So, lets remove the "veil" and show the prices of our four sellers:
Larry - 1,000,000.00
Curly - 1,010,000.00
Mo - 995,000.00
Fred - 600,000.00
Now, I was going to buy a Krakken Club. I won't assume that the going rate is 1mm (maybe it is just me, but I will put in a bid at 500k, i will not "win" so I will up the bid to 650k. Now, lo-and-behold, I just won a Krakken Club for 650k (I am happy and I go about my merry way telling my friends to search and try to bid in that price range). Word will spread to Larry, Curly, and Mo and they will panic and reduce their price because they want their Krakken Club to sell.
Now, Fred has jsut de-valued the Krakken Club by 35%. By making the market system a blind bidding you really have not reduced the undercutting. That will always be there regardless of what you try.
This rampant undercutting is just a SYMPTOM of the underlying problem which is the rampant botting (both mob bots like the ones that farm fleece and Diremite Webs and the mining/logging bots). This is the real problem and until this is resolved the market is FUBAR'd.
Here I think you are making one huge assumption. The assumption is that you are buying everything from the market boards. For me at least I run out and gather/kill most of the raw mats. So all that is lost for me is the time spent doing this process. To which, if I feel my time that I took to gather these mats is worth 200k, who is to question that?
An example, I tried to make a Weaver AF cap fr the first time (I failed because I didn't realize I needed more durability than I had for careful synthts, so that's all my fault). I went out and farmed the fleece for the woolen cloth, harvested the Crawler Cocoons for the Twinthread, and Logged the trees for my Chocobo Feather. Now if I had succeeded, I can/will sell that for what ever I feel and if I am strapped for cash, i will "fire sale" thatcrapstuff off.