Auto bid isn't the same as sniping. Sniping hides information about demand. Auto bid can't hide information as soon as there is another bidder.

Auto bid does not hide any information even with one bidder, as ebay indicates that "1 bid" has occurred.

The only way auto-bid could hide information is if eBay treated auto bid as "silent auction" style. Show "zero bids" all the way to the end, then once closed, see which 'auto-bid' came in highest and declare that bidder the winner.

Sniping is attempting to recreate 'silent auction' style bidding, with a bid system that is not 'silent'.