Although this sounds good in principal, many sellers are now taking advantage of this feature to misrepresent their products and make their products appear in search results that they would not normally appear in.
Take for instance a keyword search for a "watch", with the sort order changed to "Price + Postage: lowest first".
We find a listing like the one below, which shows some attractive watches with a price of A$1.00!

But when we click through to the full listing page we find that there is only one crappy watch for A$1.00, which wasn't in the picture in the search results, and the rest of the watches are around A$13.00 (which is still very cheap but the advertised price was misleading).
Surely eBay should change their search results page to show the full price range of the products in the listing, rather than just the lowest price product.
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