The reason USPS isn't making money is because in 2006, Congress voted to make them pre-fund about 80 years' worth of retirement benefits. That's right - benefits for employees who haven't even been born yet! This increase isn't so that USPS can grow ever-richer like an oil company; it's so they can stay afloat. I don't think it's fair to ask that post offices close and people lose their jobs just so we can continue to enjoy the luxury of low postage rates (which, even with the increase, are still lower than a lot of other countries).
So US sellers no longer have an advantage over sellers in another country whose item might be the same price but whose postage is higher - oh well! If buyers see what they want at a price they like, they'll still buy.