I encountered this site very early in my Bitcoin journey (which obviously wasn't long ago).

At that time I was looking to buy. I chose not to because I wasn't in a hurry and I am a cheapskate (Coinbase is 1/10 the price if you are willing to wait a week).

I later considered it again as a seller/lender. My biggest concern is that selling bitcoin violates Paypal's TOS.

If you take payments from buyers they consider it operating a money exchange, and that isn't permitted. Coinbase can do it because when you use coinbase you are not soliciting customers, you are selling to a business who is in that business. That is why Coinbase will pay out in Paypal, but doesn't accept Paypal for deposits.

I would use this site gladly if they made one of two changes:
 1) switched to a seller friendly processor for outgoing payments; or
 2) If they became an intermediary in the paypal transaction (i.e. the customer pays them and they pay you).

Jacob