And the last note I will make is, see how 'services' are not protected under Seller's protection either? That means that if I charge you for a service, and you pay me, there is literally no way Paypal could ever reverse the transfer at that point.

Edit* Actually I am reading what you are saying about the Seller's Protection. I will definitely have to keep digging into this until I get to the bottom, you raise a good point.

Edit 2* Well then let me pop another question on you. Someone pays me $40 USD via Paypal for some Bitcoin. Basically they 'transfer' me $40, and then I send the Bitcoin to their address. They send me the $40, it is marked as 'completed' and credited to my account. I go and purchase something off of eBay for $40, send it to the Merchant and then my PayPal balance is 0. Someone claims that that purchase was 'unauthorized' , and it was really their kid on their computer, or some malicious evil person. But they try and retrieve the $40, but it has already been paid out somewhere.

I wonder what would happen in that case? eBay purchases are really what I plan on using my Paypal USD for because I can't see them being useful for much else.