While I am emphatically NOT involved with this ebay scandal, I kind of have to shrug if the guy is selling them for such a low price. You guessed it would cost him £2.50 (about $4) in materials versus the £5 ($8) he's selling for; factor in ebay and paypal costs--and they nickel-and-dime you at every turn--and he's making maybe $2 a disc. Throw in the sheer time/cost ratio (is an hour of your life spent making a disc worth $2 to you?) and he's losing money.
So do I think he's trying to profit off your work? Hell yeah. Is he actually? Hell no.
He may be fishing for fans to buy the discs from him, but if he's searching for a sucker, all he has to do is look in the mirror.