I agree. I just saw the ebay listing for it, and yes, that set was overpriced quite a bit. In the first place, that type of RCA monochrome portable is not exactly rare; there are many of them still in use (in fact, I have a friend who has one of these sets, and he says it works great on cable, its age notwithstanding). Second, as jstout66 noted, one can find these small portables of any make one can imagine at yard sales, garage sales, etc., and for dirt-cheap prices (also as js noted). These small portables were made to sell cheaply and so aren't worth much once they are a few years old. It is not fair to sell a set like this, which is probably 25 or more years old, for as much as the owner paid for it when it was new. I think whomever is selling this is probably very new to online auctions and may not realize the foregoing. The person is likely trying to get as much money for it as he/she can, without realizing that this is not good practice.
I also saw another example of this on ebay, this time a 7-inch Motorola TV from about 1948. The seller wanted well over $2,000 for it.
Good grief! I'm sure these sets didn't cost anywhere near that much when they were new. Again, however, I think this is a case of the seller being new to online auctions and not realizing that overpricing an item is not fair, or else he/she just wanted to get as much money as he/she could from it, with no regard whatsoever for the rules and conventions of fair trading.