So.. yeah, after more "math" trying to figure out whats going on with bartering, I eventually just gave up. Clearly the description is just out and out wrong or its bugged..

I was able to "edit" my bartering up to 10, and at 10 Bartering, still for that same skill book:
Purchase Price = 136
Sale Price = 92

The "Price isn't going down or up by 10% per level beyond 5.. so I'm guessing that like "Ranged Accuracy" there is a hidden "Trade Penalty" on objects and that all bartering is doing is adjusting that trade penalty by a certain amount.

Still... having bartering is better then NOT having it... and it least it has some effect, unlike lockpicking, which again is what this thread is about.. and has no use.