wisbaker, I agree with you mostly on how that should be, but the reality is that the seller sets the initial price, and the tone for the negotiation.
Most of 'em think their machine is a golden shoebox. It is a rare and joyous day when you can tell someone that the tractor they advertised at $7000 is really only worth $2500, and not be run off the property on the end of a shotgun. Even better if they actually believe you and take the $2500 offer.
In this example, the seller MIGHT take $6700, but then again he might be one of those "the price is the price" types, who thinks haggling is unethical.
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