But what is the point of selling low rank gear? Oh, it dawned on me. This is another effect. Sure, this is only one example and it may have been a coincidence, but it sure does add to my frustration.
A bigger aspect of this is that there aren't players coming into the game so there is a small market for this. Additionally, each bazaar space is very valuable, so making those items costs a merchant a bigger chunk of profit on another item.