3. People selling items for less than the cost of obtaining them. Luxury fabrics are almost impossible to sell, even if I just want to get rid of them and put a break-even price on them.
This is because they're used in making only 1 "type" of armor, Light armor. Everything else in UT has many different uses across several crafting professions.
I think it was just an attempt at Bioware to add a little bit of diversity in crafting mats, but it failed...miserably...as (just as you stated) we can't even really GIVE them away.