How often is this scenario likely to occur? (From your text)

"let’s assume the highest bid is 0.01$ for 2000 coins. The AMM will match this with the lowest sell price (0.001$) (See the image above). As 0.01$ > 0.001$, the order will be filled. But it is filled with 0.01$, more than what the AMM asked for. (The extra money that the AMM earned by selling for higher price will be used to buy and burn the token or be rewarded to the creator. But currently, it does nothing). "

As I'm seeing from your example figures
a AMM sale at 0.001$ and 0.009$ goes into some holding wallet? With a filled order at 0.01$

So high % not going to actual token purchase ?