Rob, yes, that's so!
Snipers don't always win, which is another reason I don't feel badly using one. The maximum bid stil wins regardless. The only difference is in how it's timed.
The eBay auto-bid feature automatically tops the last bid within your preset limit. That's mainly to eBay's advantage, not your's! The higher the bid, the more the seller owes eBay, and the more you have to pay to win. eBay just LOVES aggressive bidders locked in a bidding war!
The sniper bid sits and waits until the last possible second to place the high bid (again, within your preset limit). It can only be out-bid by an auto-bid, and only if the auto-bid's limit is set higher than your limit. You can sit and wait and do the same thing manually, but you're betting that your machine and internet connection is faster than your opponents (mines not... and, you have to be sitting there watching/refreshing the bidding). Just like auto-bid, I can set my sniper limit days in advance, and forget it, without fear of a bidding war. It sends me an e-mail immediately with the end results of biding, just like eBay.
The biggest advantage is gained when there are few bidders and the bidding is low, and there don't appear to be any auto-bids. Your sniper sneaks in and takes the last possible shot with a $1 higher bid, and you've won without the bidding war! I only use sniper for higher dollar items, though. For me, that's $75-$100 or more.
https://www.ezsniper.com/ is the one I use, but there are others.