So, from a "does the market optimize for good outcomes" perspective, that seems even worse - goods (that are already produced) get hoarded and sometimes they don't even sell. This seems like it's not accomplishing the goals very well.
I think if there'd be no price gouging laws and everyone expected to be allowed to sell on Amazon, people would end up pricing lower and there'd be more supply and competition.
There's also uncertainty because when Amazon was banning for price gouging they never made it clear what price level counted as gouging. Wholesale prices shot up, and it was unclear whether selling at a reasonable margin, but based on a higher cost, would be considered gouging.
Also, Amazon this week banned all offers, not just ones that were deemed to be price gouging. eBay did the same already more than a week ago.