My two cents ..
Is it not just a case of demand and supply .
As a seller, my aim is to make money without breaking rules (and perhaps also by not evading taxes ๐ ). So selling Indian goods, that is in such a demand that an overseas buyer is ready to pay the 'premium' cost along with 'expensive' postage , then how can one not take advantage?
Said that, I agree with the opening post, why should a Indian seller knowingly 'stop' buyers from India even if you choose ebay US or UK or ES to sell your goods? If an Indian buyer is willing to pay the price and postage for the item so be it. Unless, the seller is worried that the goods will not be appreciated after the buyer gets it for that cost and therfore, risks a bad feedback. Arguably, that shows lack of confidence in the sellers part of his items.
-