Well, at first I was thinking, how are these people paying this much. Then I was talking to a co-worker (guy from India) and he told me that these phone costs them about 30,000 rupees (750 US) so actually paying 100 - 200 more then what the phone is worth is a good deal. Now I feel better.
He also said, they would rather buy from eBay unlocked instead of buying from Apple and doing it themselves as not everyone feels comfortable unlocking it.