Pete, I agree with everything you say. You say, in part, "If you want to only take direct transfers, you can't have PayPal listed in the auction at all, but you can write in the bill when you send the invoice that you can accept PayPal fund transfer as an option."

That is a good approach, but I bet that FeeBay/PayNoPal will object to any suggestion the seller makes anywhere as to paying for an auction to a Personal account -- whether the seller suggests it as an option in the either the auction description or an invoice after the auction!

In their PayPal discussion forum, eBay never gives an opinion, they probably want to spring the bad news slowly.
http://forums.ebay.com/db2/forum.jspa?forumID=97

Robert