I agree that there are items for sale on ebay that can be downloaded. Looking at this persons listing it is possible that what he is selling is the original Line 6 CD that came with the USB interface. While I think that £4.99 is well over the top and people that know will download the software what he is doing is possibly completely legit.

What bothers me more is the person selling downloaded tones from custometone (mind you even that person points out in his listing that he is selling tones that can be freely downloaded).

So yes I agree with you - perhaps you could ask a question of the seller (something like "Is this the same software that can be freely downloaded from the Line 6 website?") this would then appear at the bottom of the listing - I think - and would at least warn other buyers.