That's the thing though, remember that old adage "The customer is always right" it means that at the end of the day, right or wrong, good or bad, allowed or not-allowed, caring or cold, sue-happy or not if the people that use the website are complaining (and so far it seems they are) than cragislist is broken, because it's leadership lost the respect of it's market. There is absolutely nothing stopping someone from making a new place-to-list-stuff-for-sale, that's easier to use, safer, and open source for that matter.
People, why aren't we just getting together to do just this, we've got UX people, web people, team management types and coders out the wazoo here. Let's just make a new craiglist already.
PS: I forgot, we've got marketing genius's here to, that can make miracles happen with just about zero dollars.
PPS: It doesn't matter how much that saying irritates you, as a business owner, try being successful without customers. If anything the saying is truest only when a majority of the customers believe the same thing, but there is still truth in it. (Obviously a jerk customer that other customers would shun will have no impact on you if you say I won't serve you.) "The customers are always right" :)