I really don't like eBay or PayPal.
I've never gotten value out of eBay, and both eBay and PayPal were unforgivably slow to address problems with fraud and phishing. I won't go near either one. Instead I use Amazon and/or Craigslist for buying and selling used goods.
For years I thought Google Checkout and Google Base were going to put PayPal and eBay out of business. (I sure drank the Kool-aid on Google Base -- guess I'm not infallible after all.)
Didn't happen. Just another one of life's mysteries, like the continued survival of humanity.
Or maybe it's happening now. The NYT Bits Blog has two noteworthy posts on the topic: