I think it's great. *If you buy and sell a lot, it cuts down on the wait time. *If you've got a buyer who is on the ball, you could have money in an instant, ship the item and forget about it all in about an hour's time.
You can leave money in your Pay Pal account and earn about 5 % interest on it, sort of like a bank account. *Basically, I liken it to a debit card - you put money in it, and can buy things up to the amount of your balance. *You can also use it with credit cards.
When you want to cash out, they will transfer your balance to your savings account within 3-4 business days.
There are limitations on the free account - $250 I think is the limit. *Or you can sign up for a business account, which will stick you with a 2.5% surcharge plus .50 per transaction. *I ususally just tack on an extra 2.5% to the purchase price, or ask the buyer to just send a money order to avoid the few bucks extra they'll have to pay.
All in all, I like Pay Pal.