I will do this if you can send me a pic of you holding your ID and a statement that your buying goods via Paypal on "x" date.  The ID must match the verified paypal account associated with the transaction.

I think that's why most people ask for 7.5%+ above Preev rate when buying btc for Paypal to cover fees and make a little profit on top.

For the record I wouldn't sell btc for Paypal to a newbie at any rate, far too high a risk of charge back. I would sell to established members with decent trust feedback though.

I only do this for 1 reason. If someone sells me some Paypal and they take a picture of the their ID, holding it, with a statement that I've agreed to buy "x" on this date, its hard for Paypal to disbelieve that I didn't actually make the purchase. This is just a safeguard way of showing that their is no intention of a chargeback.

Don't know about changing drastically their TOS, but Ebay in latest policy protect the seller of digital goods. Finally. Paypal was together with Ebay, now they parted but they still have close contacts together.
Still as long as there is localbitcoins, why pay huge fees via Paypal ? Lots of other methods accepted.