Not quite right.
This particular listing did not have a buy-it-now price.
It had however been available and well advertised at the same price tag since some time in May.
Regarding what ebay allows, here is the relevant 'rule' which was followed to the letter:
http://pages.ebay.co.uk/help/sell/end_early.html

Specifically "Note: It is acceptable for sellers to end a listing early and sell an item to the highest bidder at their current bid price. Bidders are permitted to contact sellers with requests to end a listing early for this reason; however, sellers are under no obligation to do so."

There was no fee avoidance. The auction was ended early in the high bidders favor. People on the strike board insinuated it was 'cancelled'. That would have been a completely different matter.