I agree, the bots are a fantastic tool but should be used with caution and others in mind. I normally try to bid on bots when they have no other bids on them. As you said, others can ultimately lose out and not profit from not paying attention or overbidding on a already maxed out bid bot.
In part I think many do not pay much attention to the suggested minimum, as they just see the huge dollar amount of the bot and jump right in and bid.
People can be blinded by the almighty dollar sign.