Werticus,
I have only had one transaction that went sour on either A-gon or ebay in 4 years and I always use PayPal for payment of goods. That one time I had a dispute, Paypal responded to my situation within 48 hours and had resolution with a week. Visa, Mastercard or American Express (if you have this Down Under) will typically take far longer.
In the end I lost 3% - Paypal's transaction fee - when they determined that the seller (the other guy) was in the wrong. What amounts to a 3% surcharge for their service, and safety, seems to be a cheap insurance policy to me.
Perhaps others will chime in PayPal stories of woe, but I think they are an invaluable aid to electronic commerce.