Oh and also.. some people legitely buy btc from ebay just because its the best way they know..
#bitcoin-otc on freenode could also be helpful for people just wanting to buy some BTC.
Its not that hard

Are they doing it at market rate, or at ebay like prices?
It depends on what you negotiate with the people on there. But yes you can get market rate on bitcoin-otc. It just takes a little bit of patience to initially set up.