The PayPal-only mandate definitely hurt sales. For me, I stopped selling when they changed their policies to favor the buyer. I had three people receive their items (which I could prove with delivery confirmation), then they claimed they had never ordered them or their child had without their permission. I said I would refund the money when they returned the items. They never returned the items, but PayPal refunded them out of my account anyway. The buyer got the items and the money back. I got nothing, except the bill from eBay for listing and final value fees.
*EDIT* - This was from non-Redemption items.