I think the people putting out the cheap equipment are the ones spending not insignificant amounts of real cash on energy. You spend $50, you've got enough energy that the 50 needed to craft those things is unnoticable
To the "free" players, energy is this amazingly valuable commodity. To almost anyone that's willing to pay, energy is cheap and just a price of playing the game.
That doesn't make any sense though. If they're buying tons of energy, why would they work to sell the swords at half the price of the energy? If they wanted crowns they could sell the energy instantly for twice as much.
Only thing I can think is they're wanting a specific UV and don't care how much money they blow through to get it, so they just sit there making tons and tons and tons of them until they do.
Even in that case though, they'd have to be getting really really good UVs to make it worthwhile.
Take the general price of 2k for a Brandish (sometimes go way cheaper or slightly higher, but that seems to be a fair average). And take a conservative price to make them at around 3700, assuming they get good deals on materials. Say they make 10 on average for every 1 UV (it's 10% chance). Total cost to make would be 37000, total sales on the 9 normal ones would be 16200. That UV costed them 20800 to make, so they would have to sell it on the AH for over 23k just to break even. Most UVs are crappy ones that only go for like 6k if not less.
I bet the game company loves people who hunt UVs though. It's an ingenious system. It gives the people willing to pay lots of real money for ingame items an outlet to effectively gamble for them. Even if they win big and get something really rare, it's still just a virtual item and all it does is make his friends want to gamble for one when he shows it off. It's like some kind of virtual slot machine where you put in real quarters but all you get if you win is a big "Congratulations! You won!" and a virtual award certificate to show off to your friends.