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I've been using PayPal for online transactions for 20 years and have never thought to either pay or ask to be paid via friends and family. If someone is insistent in their ad, I generally just add 3% and send it via goods/services route.
For what it's worth, I was scammed by a buyer that won the paypal case alleging improper shipping on a brand new alternator I sold, then "returned" to me a used (and interestingly enough, poorly packaged) alternator. Point being, it's still not a perfect process when you combine a very disinterested customer service team with a POS scammer/forum member.
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