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.