Amen! I ran an eBay store for two years and specified I would accept PayPal (preferred), money order or certified check. In two years I only had a couple customers send checks. I believe PayPal increases sales as well as offering great protection. It's more convenient for buyer and seller and the buyers get their product more quickly.
It really does increase business. Personally, I've wanted a JK Kephart for a while, but I've never actually ordered one, because I cant send paypal.