i pretty much love paypal. i think the fees are worth the ease and my piece of mind. years ago i bought some dvds on ebay using paypal, they didn't play so i contacted the seller and after 2 weeks got the reply of 'what do you want?' when i said new dvds or my money back they didn't reply, so i put in a claim through paypal and got my money back.
the protection is worth it to me, and as others have said, it just means i bump up the price of the item a little more to cover the costs.
hope you're not put off by paypal too much and you learn to love it like i do!
wererat