Regarding other auction methods, I just find them more susceptible to corruption even if you have a trusted host with the very best of intentions. There are too many unknown variables whereas the silent auction offers a more controlled environment. Not saying errors or shenanigans don't occur, but even so most of them can be easily rectified with no harm nor foul.
Couldn't the owner of the item submitted to the silent auction house bid their own item up? Then even if they have the winning bid, when they don't show up the host would take the 2nd highest bid from the real person who wanted it. The owner would recieve a much higher price for their item, the auctioneer would recieve a larger commision regardless of whether they knew about the cheating or not, and the person who pays for the item would never know they had been manipulated. The item's owner could even use a trial account to bid, that way if the host bans them it doesn't hurt them at all. It seems like silent auctions are just as susceptible to corruption as the other types to me. Not accusing anyone of anything of course, just a hypothetical scenario. In live auctions at least everyone can see the person who's bidding, in silent auctions the fake bidder could just stay hidden the whole time.
This is a very astute and accurate observation that I share and have personally witnessed as a Rares Festival Host and bidder, but never have I ever experienced this in my own personal silent auctions. This is because Rares Festivals have many sellers and buyers (well over 40 each) and over 100 item lots up for auction. I believe I was lucky during the Atlantic 2013 and Europa 2013 rares festivals. However I caught players attempting to do exactly what you are pointing out during the Pacific 2013 + Atlantic 2014 Rares Festival. As a Host I did my best to police these attempts, and I will be the first to admit that I didn't catch everyone at the Pacific festival which was the first time this occurred. It was also the largest silent auction in history with 3 houses. However learning from my mistakes, suffering some embarrassment, I was able to prevent these manipulative practices in the last Atlantic Rares Festival, which I made public and transparent.
Again if you trust the silent auctioneer, I know from personal experience that all corruption can be avoided because I am only selling 24 lots from 1 - 3 players, I know who they are, and most importantly I know all the buyers. Perhaps this is because the majority are frequent customers, and I can quickly root out fake bidders and ban them from my house, which I did with regularity, and without any harm to the auction. Yes some bidders might be invisible, but this does not matter as long as they leave their ICQ on the bulletin, and I speak to them. I am proud that my system in my own personal silent auctions in my own home is beyond reproach. Any of my sellers and buyers can attest to this fact. I cannot recall a single unhappy bidder or seller.
Respectfully, at live auctions, no matter how impeccable the auctioneer's reputation is, I still have known players to brag how they bid up their items on alts or had their friends, and paid for them if they won. I know a famous troll who did this shameless and frequently. I have witnessed it too many times first hand, and its why I avoid them. Its sad, because I was a regular customer of some of the earliest live auctions, but as a trusted broker, I often hear after the fact some of the dirty scams players employ, and sadly they love to target live auctions.
Even with this being said, if a player really wants an item, regardless what auction its held in, regardless how safe, or accurate the bidding is, players will pay what they must if they have to have the item in that auction, especially when its hard to attain that item anywhere else. Plenty of items still go for cheap at live auctions. I am certain not every single item is manipulated, its probably done on less than 10% of auctions items put up at any given auction.
Again, no system is perfect, and without flaws, not yet anyways. I think an in game auction system could be employed in UO, particularly now that the vendor search system has been implemented. If given the time and resources, I don't think its out of the realm of possibility.