Hmm...  I don't know if anything can (or should) really be done bout this.  What this person is selling, primarily, is a joystick.  As stated, the Mame CD is a bonus.  A bonus is, by definition, something you get free.  What he's violating here is the rule against distributing the Mame executable together with the ROMs, a no-no for sure.  You can complain, and maybe Ebay will ask kim to pull it and re-submit it without the software.  
I'm sure the joystick could go for a good price without the software.  Why he feels the need to throw it in I can't understand.  Anyone who knows what Mame is will know where to get it anyway.  The problem is that every time someone does things like this, it jeopardizes the whole Mame project.