The point of an auction for the buyer is to try to get a good deal on an item or simply FIND the item they're looking for. If you want to get a deal, then you don't want to immediately increase the price that YOU will end up paying.
Even if the item is popular, the price will be driven up at the end of the auction by everyone thinking they'll get a great deal. If the person is willing to pay a high price for the item (as indicated by their willingness to drive up the price at the START of the auction), then they would be smart to wait near the end of the auction where the item might still be cheap and then bid well above what people are bidding, more near the expected price to drive away the last minute low bidders whom the low price attracted.
If their goal is to drive away people earlier, then it'd make more sense to just drive the price up much closer to the expected price rather than to a price that wouldn't necessarily drive away low bidders but just make it look like more than a useless throwaway item. The more bids on an item, the more potential bidders can see the product is probably WORTH getting. I can only see this benefiting the seller.