That is just cuz they are morons. There is nothing wrong with Paypal. In fact, it's the only way to go, and gives you the best protection. Money orders and Checks are a good way to get screwed.
I've been trying to figure this out for a few days, and I still don't see why all the fuss.
It should be that way. I buy a few things off Ebay, and if it blew up tomorrow it wouldn't be the end of the world. I got a just a few things that the seller required money order and didn't have a Paypal account - probably some dinosaur afraid of technology, and it's a PITA and takes twice as long. I have to go somewhere and get a money order, another PITA, and pay for the the money order, then send it, which also cost me something, then wait for the seller to receive it, which on average takes a week. So I just avoid those auctions that require money order now.
Paypal, click, click, click you are done in thrity seconds, costs nothing, and chopped a week off the transaction time. Seems like a no brainer to me.