Can a business like eBay survive by treating sellers so badly? How can this be a good business decision?

ebay have made these changes that are nothing short of business suicide.
(1) instantly lowered ALL feedback scores by counting neutral as negative
(2) stopped sellers from leaving anything but positive feedback
(3) removed the ability to mutually remove negative feedback. This can only have a negative impact. If a buyer leaves negative feedback - the seller no longer has any reason to work things out since the feedback cannot be removed. This will LOWER customer service.
All this has made it a ONE WAY market. Sellers are LEAVING. How can eBay prosper by driving sellers away?
Does ebay not realise they need BOTH buyers and sellers in order to succeed?
The share price has been dropping and is around $28 down from over $30. My personal opinion is that eBay will drop to below $20 because of the impact of sellers leaving on large numbers

I think ebay has made a big mistake. I personally sell on ebay. With the change in feedback, they dropped me down from a 100% to a 99.8 due to 2 underserved neutrals. I have always bent over backward on customer service. Not now. Almost immediately my sales dropped from 300-350 per week to 99 in the first week of June. That is a major drop. I can't conduct business that way. Besides, during the month of May when all the changes were implemented, I had more Non-paying bidders and "I changed my minds" in the one month than I have had in 10 years of selling on ebay. Now tell me that isn't buyers taking advantage. Since sellers can't leave negative, if a buyer is mad a seller from something that may have occurred in the past, what better way to get back at them than to buy (even under a different name) and then leave them negatives. The whole thing is ridiculous and ebay deserves what ever losses they incur. i personally hope they will see the err of their ways and try to fix things, before it is too late.

Agreed. We've all heard that eBay was putting this silly idea into practice but there is NO reason stated why they think it's such a great idea! I would seriously hesitate to sell on eBay these days.