Why is escrow such a big discussion here? I see a few problems with it and therefore did not implement escrow in my online store. My biggest problem is that I dont know what to do with the payment upon escrows expiration. Once I place payment in escrow, it becomes buyers responsibility to go back to the store where goods were purchased and acknowledge the receipt of the goods so that payment could be released to the seller. When I buy things online, I rarely acknowledge their receipt, partially because I know that a lengthy survey about customer experience will be waiting for me right after I acknowledge the receipt. So what shall I do on my web site when buyer simply didnt bother to acknowledge receipt of the items? Shall I release payment to the seller anyway? What if courier service has gone on strike and buyer has not received the items upon escrows expiration? Should seller receive the payment in this case? In all scenarios that I can think of the only case when payment should be returned to buyer is when seller doesnt ship the goods. In all other cases escrow is merely a delay.
My second question is why this discussion implies that escrow is a third party business, like a paypal? I use Ethereum to facilitate payments on my web site. To disburse payments among sellers of items from a buyers cart I prepare a contract and upload it onto Ethereum network. That contract is perfectly capable of holding payments until buyer acknowledges receipt of the items acting as an escrow. Therefore I do not see a need for a business entity to provide such service.