A small update here http://www.regretsy.com/2011/12/06/sooner-or-later-youll-pay-pal/
An interesting snippit, where bitcoin could shine,
"That’s not just bad for me, it’s bad for anyone who uses Paypal. Because as long as policies are this ambiguous, people will come up against this kind of crap and see their assets frozen. How many of them are going to be able to ratchet up the public shaming that was handed out in the last 24 hours?
And I think we all know that Paypal’s apologies and reversals were motivated by the intense scrutiny they’ve been subjected to. If I were Sally’s Soap Shack, I would be waiting out that six month hold right now and wondering how to make Ramen noodles taste like Christmas ham."
They have also offered me the opportunity of doing unlimited business without fees through the end of the year. It’s really the only way I’d use them at this point, since they won’t be getting anything from me.