On the buyer side: I personally think there is a combination of the listing agent, how seasoned the listing agent is and how persistent that listing agent is with the bank or mitigation department. It also depends on how much prep work was done prior to having the property entering into a short sale.
On the listing side: I draw on my experience from working with REOs (which is what really happens after a failed short sale), I see that prices for short sale homes were way out of the market price when they were listed and in no way comparable to other listed properties. Maybe that one was an extreme case, but it seems to hold fairly true for a majority of the ones I've seen.
When I price homes for short sale, I price based on a BPO (broker's price opinion). I know some banks have another broker do the pricing, which is fine, but it shouldn't take months if the bank already knows what to do and the buyer has already shown hardship.
There is a lot of misinformation out there, especially in the market that we're in. Short sales are sometimes treated by listing agents as regular homes for sale. And buyers are unaware of the process so it makes it frustrating for those being blind and for those following the blind.
Anyway, that's my frustration with short sales -- it's basically people not getting or giving the right information.