Agreed paypal fees are horrible.. something must b done!
The thing that bugs me is that the ebay fees are calculated on the whole sale amount, even though you have no choice but to get the money through paypal. The 10% ebay fee should be calculated on the amount you actually get in your paypal account, after paypal fees. I feel like they double dip there, on top of their already outrageous fees.
They unfortunately don't consider the PayPal fee and charge their sole 10% on all products with the result of which people over price their product and rarely get any sellers. I also tried to auction my product but closed it when I realized I am losing PP fee of 4.5% + $0.35 and their 10%. It isn't worth my time.