The <500g parcel rate has only gone up an extra .35c, so that rate shouldn't hurt sellers who offer free postage. The new rate includes tracking, which has the benefit (according to the current eBay guide) of giving an automatic 5 star Communication if tracking is uploaded within a business day of cleared payment (and other criteria are met.) So, it's good for a seller that tracking is automatically included now.

About sending small items; if your items width/thickness is less than 20mm and weighs under 500g, you can most likely send it as a large letter. Great for CDs, DVDs and the like. The rates for those haven't changed and should be around $1.20 or $1.80 for stamps.