While no one is arguing that recalled toys should be sold to kids, or handed out to them (bad Halloween idea, don't do it, lol), or shot at their eyeballs, I think the problem with the Sky Dancers scenario is twofold:
1. The rule is unevenly applied. A quick glance at ebay shows quite a few active and completed listings.
2. Even though there was a recall, the same technology has been repackaged and sold over and over again since the recall. Under the Skydancers name more than once, even. As a consumer, this leads to questions about the original recall.
The problem for the OP is escalated to another level. Ebay should not have suspended the account without a warning.
I have listed Skydancers on ebay before as well and had them pulled. I got a warning message. At the time, I also got annoyed by how many other listings were still up when mine were pulled, with no rhyme or reason to it. I have found a few alternate sites to list them over the years, but at this point I've actually accumulated a great collection by default.
Now I'm probably going to be buying some of yours at the Pony Friends Forever Convention, lol. It's not my fault... it's ebay's fault...