I've stopped using Paypal in all instances except when there is no other option (which is very rare). Recently, Paypal banned the use of their services for purchases of tobacco or tobacco-related items (I smoke a pipe), so all those auctions for estate pipes on eBay now require money orders or checks. It's not a big deal, just have to get used to the lack of near-instant gratification.
However, the worst thing about PayPal is their complete lack of concern about their customers. Remember that they're not a bank and are not regulated like banks. I've personally had horrendous experiences with them when it came to a fraud claim, and eventually settled the problem by having my credit card company charge them back (which resulted in threatening emails from PayPal).
The most recent thing that pisses me off about PayPal is what they did to the site
http://www.somethingawful.com. This site is an active community site for geeks and nerds with twisted senses of humor (they insult everyone and everything, pretty equally). I don't recommend it to most of the visitors of this site as I imagine there's a good likelihood of folks being offended. Consider yourselves warned
However, they've done some amazing work raising funds for good causes. One of the forum members of the site was deployed to Iraq and none of his platoon was equipped with body armor. The owners of the site started a fund-raising campaign and raised $22,000 dollars to purchase body armor on the private market and have it shipped to the platoon.
Recently, they started a fund-raiser to donate money to the Red Cross for hurricane relief. They managed to raise $30,000 in 9 hours. Then PayPal locked the account. Yep...no more donations and no access to the money. Apparently the amount of money heading into one account set off red flags that caused the lock down of the account. Ok, fine...red flag. Unforunately, because of PayPal's complete lack of customer support, there is no easy way to get an account active again. You can check out there page to read about all the hoops that they had to jump through with PayPal. The short story is that they're getting all the donations refunded (although internationl donations will be refunded minus the fund-conversion fees) to the donators. Effectively, PayPal just cost the Red Cross $30,000+ dollars. Of course, the guys are going to re-run the fund raiser with a different method of collection, but what a ridiculous situation in which to find oneself.
Just more reasons why I won't give PayPal business.