But if that's the real reason why people advise not to sell bitcoin on paypal then won't that be easy to get around? You can agree with the buyer to sell btc but on paypal make sure the note says you're selling some random item and then you can ship the buyer an empty envelope just to show a tracking number on paypal but the buyer got his btc and you got your $$.
Selling btc in that way is like selling pretty much any other item but people seem to get extra paranoid when it's btc being sold.
You're missing the point I guess. If Paypal ToS already deems bitcoin sales as illegal then any transaction is illegal. Not only is the buyer not protected, you risk funds being frozen.
Paypal is not my favourite at all.
Did you even read the post you quoted? I suggested selling some random item on paypal. The bitcoin sale will be a personal agreement between you and the buyer. Paypal is the payment medium for selling an envelope or something. When you get paid for the envelope, you send the buyer bitcoin along with the envelope. Paypal does not know that bitcoin is involved in the transaction.