I think there is still much room for improvement with eBay's Paypal system.
For total confidence the money from Paypal should be paid to a neutral party let's say eBay
and once payment to eBay is confirmed then Seller has the go ahead to send the item
when the buyer receives the item and is satisfied he/she can notify eBay and then the money shall be transfered to the seller's account.
This is the process in most of the online buying sites in Asia.
I was close to been scammed $1200 for a pc on eBay where there was no pick-up or Paypal available initially.
The seller has 29 positive feedbacks but mostly from buying cheap jewelry crap from Hong Kong.
He claimed his Paypal was limited for this month but then said he'll use his friend's Paypal Account and link it to his eBay account so I can pay him thru Paypal.
I later received an email from another member on eBay whom alleged the seller (with no previous selling feedback) sold him a similar item,
after he paid the seller, a package arrived where he received only the case and nothing else.
The seller would then proclaimed that someone has accessed his eBay account and to which eBay will remove the auction item,
not allowing any feedback to be given and leaving no trace of the auction on the seller's record history.
Why someone would bad mouth another eBay member whom they've never dealt business with is beyond me,
but that's my experience from eBay, I know I've been lucky.