Bad thing, this "tactic" is more and more taking over, and in the end it will be a boomerag because all private "re-sellers" hoping for raising prices will jump of the wagon and not order again (or just 1 personal copy) as a limited edition that will be repressed again and again does not have much collectors value anymore.
Sales will go down when the market gets flooded.

So that's the good part. Right?

I didn't get why you bought it in the first place,because it is limited,because it was supposed to be a "collector's item" or because you wanted the LP?

Now someone needs to get the Brocas Helm demos out on lp too....

If a flooded market -> decreasing sales -> less releases on vinyl (remember the 90ies when vinyl was already dead?) is what you want: yes thats the good part.

500 sold and people keep asking, so they press more. How will sales decrease?

The chances you can sell with profit are lower, but for that there's other markets.

I strongly encourage this way of doing business. More demand = more copies.

For me personally a product is limited only if it is hand numbered and/or there is a printed statement on the back cover declaring explicitly it is limited to XXX copies never to be re-pressed. Otherwise people can say anything, but words are wind.

So having said that, this release looks like unlimited to me, and I for one am happy Greg was able to sell and warrant a re-pressing so fast. He surely could have held the last 50 copies of first pressing to sell one at a time on eGay and would have made much more money than investing in second pressing. He did not, instead he is giving chance to more people to have it at regular price. I see nothing wrong with that.