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Did eBay take the name from the Pig Latin word for be?

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No. This is from an online excerpt of The Perfect Store, which was apparently written with the full cooperation of the company:

That spring, [Pierre] Omidyar had formed a sole proprietorship for his web consulting and freelance technology work, which he had named Echo Bay Technology Group. The name was not a reference to Echo Bay, Nevada, the wilderness area near Lake Mead, or to any other real-world Echo Bay. "It just sounded cool," he says. When he tried to register EchoBay.com, however, he found he was a few months too late. Echo Bay Mines, a Canadian company that mined for gold in Nevada, had gotten to it first, and was using echobay.com for its corporate home page. Omidyar registered what he considered to be the next best thing: eBay.com.

So it was just his second choice, not something he did to be clever.

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That's interesting. I always assumed that the company was based on the SF bay area, and that it was from "e", a common shortening of electronic which was popular at the time on analogy with "email", and "bay", referring to the area it was (I assumed) first deployed in. –  Alan Hogue Aug 21 '10 at 2:53
Completely revised the answer. It now includes an actual secondary source rather than relying on Wikipedia. @Alan –  mmyers Aug 21 '10 at 4:02

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