Yeah. I have a website in a really small niche market for fuel mileage logs. Various PPC keywords hit under $0.05. Also, a conversion brings in very little revenue so the CPC stays low.
The majority of my keywords have a minimum bid of £0.03 or less (£0.01 in many cases). I don't bid that little, but I'm sure that there are plenty who do...
Rock-bottom bids seem to establish bragging rights among advertisers (and yes, I've done my share in these forums, too). But I've got higher bids that convert better--so what's the point?
You people in UK loose money because yours min bid is £0.01 when it's $0.01 in US and 0.01 euro in many EU countries.