I was making a living on ebay (legitimately) for the last 10 years. Did nothing but eBay and making decent living. However, with their DSR system, I got screwed with a few people leaving low star ratings for shipping time. Long story short, one of my suppliers which did dropshipping for me was taking too long to ship out. Fell into the 'below standard' and as of Jan, got the dreaded 'indefinitely restricted' email. They killed off all my listings (hundreds) and now i'm screwed.
Trying to get back on by creating a semi stealth account, but won't be able to list anything from that supplier again (shame as its was my bread and butter). So yeah, its possible to go legit on ebay and make great money. But don't let ANY of your DSR ratings fall. Actually, my DSR ratings were still pretty good (above 4.7, 4.9 etc) but if you get 3 or more people that want to give you 1's and 2's instead of 4's and 5's, it can mess you up big time.
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