PayPal will not protect anyone who risks this deal. Engaging escrow offers no protection. If anyone does this deal, there is a good chance of being burned.

Look at the overall and bigger picture: new account, PayPal, send coins first. "Known trader" is an arbitrary random term which opens up a can of worms here. His strategy here will be this: you are all unknown traders and therefore must send first. In the rare case that a green trust member risks this, he still holds the upper hand here. He can (and I suspect, will) reverse that PayPal payment.

So if you are being generous this Christmas and simply want to waste or donate some coins, then this guy is a candidate for your donation.