I can't speak for anybody else, and I wouldn't presume to tell you you're wrong. However, my experience since using AS has led me to be a dyed in the wool sniper.
By using AS my 'competition' never even knows I'm interested in an item until it's too late. If I were to place a proxy bid manually on eBay, then someone else has the opportunity to test the limits of that bid and have enough time to outbid me. If I use AS to place my bid in the final seconds of an auction the other bidders don't have enough time to react and place a higher bid.
That doesn't mean I win every auction I snipe. Sometimes the amount I snipe is not high enough. In those cases I say 'oh well', and realize the item went for more than I was willing to spend.
My goal is not to buy an item at auction for my 'maximum'. My goal is to buy an item at auction for as little as possible, but not to go over my maximum. Since I've been using AS, I have saved so much money by avoiding bidding wars. The other bidders don't even know I'm interested in an item, much less what price I might be willing to pay. I've avoided being pushed to my maximum time and time again.
If every single bidder in the world signed up for AS tomorrow, and used AS exclusively to place their bids, would we all be back at square one? Maybe. But then again, it might actually make things even more interesting. You would never know if someone was going to snipe the same item you were wanting. And you still would not have 'bidding wars.' So I don't think it would be back to 'square one.'
Of coarse, there's no way, every single bidder in the world is going to sign up and use AS exclusively. So, for those of us who use AS and enjoy the thrill of sniping and the money it saves us, we'll continue to "lurk" in the shadows, choose our auctions with care, and smile when our last second bid come in out of nowhere to win an auction, leaving other bidders to ask themselves "who was that, and where did they come from?!"