Yes - some still buy from Italy. The price hikes can be attributed to two main reasons ;
1 - Private buyers that have bought containers don't negotiate. One bought 2 containers and dumped them on eBay. Another bragged about have "16 containers on the water".
2 - Local Dealers who list overpriced "shop outs" on eBay. Our overseas friends salivate when they visit eBay and see minimal work to a TZ wih a $9000+ price tag. These game never sell, but it leaves the impression on suppliers that the game DO sell for $9000 +.. Ironically, the dealers constantly complain that the prices go up due to everyone else except them. This is the main reason.
I have bought from them, but, but most likely won't due to the prices. Three years ago they were practically giving away a container of EMs for $300 Euros each with free shipping. Initially they wanted $750 Euros a game and they sat in the wet and moldy storage for months until they moved them to their warehouse (which was nice and dry - the selling point !). They were Italian conversions, add a balls and rusted machines that had heads not matching bodies. My point being is that once their warehouse fills up - the prices drop. The obligatory "Hurry, pinballs are drying up" email will no doubt follow, and then 2 months later - they have 200 games.
The condition of the games are never a problem for me. I know what I'm buying, I know what I'm doing and I know my customers will expect very nice games when done.