Falcon, think of how it would go if the bids WEREN'T snipes -- the first two in that increment would get accepted, but then the third bidder wouldn't even be able to ENTER his/her bid, because it wouldn't meet the minimum bid. So of course it wouldn't show in the bid history. Same with the snipes. The third bid doesn't show because it wasn't accepted.
You're right, people might wonder why their bid doesn't show, but that's only because they don't understand the system. The answer is easy -- by the time their bid was placed, it wasn't high enough to be accepted. YOu only get a partial increment if your proxy was MORE THAN one increment over the next-highest proxy's max.