I'm confused - there is a bid/ask spread of $10.00/10.05. A person comes along and deliberately chooses to buy at $10.05, rather than placing a passive ALO buy order at $10.00 or $10.01.

Why do you think this person didn't want or need liquidity?

And why do you feel that it's worse for a machine to sell it to him at a low price than for a human to sell it to him at a high price?