I have enjoyed using paypal for the past few years, and have had no problems with it so far. I have sent money to other people's paypal accounts (free of charge) for non-ebay transactions, and have used it for the majority of my paypal purchases, the money comes out of my regualr checking account. I don't often look whether a seller takes paypal when bidding, but find myself disappointed if I win an item and the seller doesn't take paypal. It is not at all convenient for me to get a money order, and my bank charges 65 cents a piece for them, plus the cost of a stamp, and my time to hassle with it. With paypal, the transaction is done in less than a minute. Sometimes it is 3-4 days before I can get to the bank, and then by the time the m.o. arrives the seller is starting to get impatient.
I realize that paypal is just as inconvenient for some sellers(due to the fees) as money orders are to me, so I just try to go with the flow.
I have sold a few items on ebay, and enjoy getting prompt payment via paypal, I view their charges part of the cost of doing business with them. I view their fees cheap when I consider the worldwide exposure that my items get. I have sold some items that could sit at a flea market or swap meet for years with no interest, but on ebay the "right people" saw the items and bid very generously to get them!
The money orders seem to take forever to arrive, especially if there's some old rusty piece still setting in the weeds that for which I have ear-marked my auction proceeds. I have a paypal debit card that I use to spend most of my ebay earnings. There are no additional fees associated with using it unless you use it at a cash machine, then you have to pay the atm fee. I think it is remarkable that an auction can end at 9:00, a buyer can pay you via paypal from europe at 9:05, and I can go down to the gas station and spend the funds at 9:10! Nowadays, nearly every place of business takes plastic, so the debit card works for almost everything a person would by through the course of a day.
Just my point of view!! Whatever it's worth