Well, personally I think Ebay is in the wrong here. To be entirely honest with you I think they should remain politically neutral, and it seems like this is what amounts to Republican bashing. You didn't have similar issues over resales of autographed copies of the "Spider Man meets Obama" crossover.
Also in general it seems the leanings of those on this site (and arguably most fan sites in general) tends to be pretty far to the left. In general the country is polarized 50-50 and Obama came into power with a 7% lead after two terms of Republican domination. There is neither a *massive* anti-Republican sentiment, nor quite the hatred for Bush some believe there is (he WAS a two term president).
Now truthfully a failed Vice Presidential cantidate doesn't strike me as being any big deal, even with a governorship. It's not like it's the signature of a president or vice president. As such my attitude is pretty "meh" when it comes to someone asking a million dollars for it (and I think the bid was bogus, similar to some of the bids to buy the name to the "Goatse" site via auction once upon a time).
That said, I'm sure she has FAR more fans than many people here would like to admit, not many people even get a shot at running a state, never mind even TRYING for the Vice Presidency. She is hardly a failed politician even with all of the scandals, she's gotten further than well... pretty much everyone outside a very select group of people.
I don't find this inherantly "lulzworthy" but I do think 1.1 million is kind of ridiculous for her autograph. I'd think it would double or triple the standard cost of the X-box tops.