That is true if you assume every buyer is going to cheat you. I would pay for the insurance to protect me from a seller not sending. Like you said on a $1 ~ $2 item what's the risk? As a seller I gave the buyer the option up to $25 then I built it into the s/h, it protected us both. I am a 50/50 buyer seller.

I just have a bad taste from other sellers charging way more for s/h than they are out (I know because I sell too), sellers using shills to run the price up, etc. If I question a buyers credibility at all I keep right on browsing. Plus, I seldom do business without paypal anymore (it saved me, where a Money order would have taken forever, if at all). I also look at feedback. As usless as it is, if it contains negs I keep browsing.

NOTE: I have NEVER had ANY problems buying or selling to chippers, plus many times I ship prior to payment arriving.