I am in absolutely no way defending what that moron did or defending any such behavior. For me, in my opinion and experience as a buyer once, Ebay is scary, but paypal is bad both ways. I made the mistake once of using paypal to purchase something and I will never have anything to do with them or ebay again. I learned. Let's just say if it weren't for the alertness of my credit union and them doing what needed to be done, I'd be in a bad way. There is no "buyer protection" with paypal either based on my one experience with them, nobody is protected.
I am also aware things have changed for the seller side as well (I know folks who "used" to sell on Ebay, but not anymore because of the expense and hassle). It's bad for both.
I avoid both ebay and paypal, period, no matter what.