My thinking on this has evolved slightly, I hope that is allowed. It, like any thought process, is shaped by progressive experiences. In this case, as I attend more auctions.
I see frag auctions/swaps as a chance for hobbyists to buy corals, hopefully for a lower price. If a store owner/employee buys a bunch of corals it reduces the "pool" available to hobbyists. Sure, the frags end up in hobbyist tanks, but not in the intended nature of the auction/swap.
In that same thought, if a store owner/employee is willing to sell frags under the same rules as the rest of us, it increases the "pool" and is a great thing.