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Excellent post Kartu!
PayPal protection is a bit of a misnomer. Like you say, all a seller has to do is show delivery confirmation and they're good to go. Who's to prove that you got what you actually ordered? Nobody.
And worse yet, at least for Canadians customers, if you buy a product from anywhere outside Canada and have to make use of that 'protection' you have to send it back to the seller with online, verifiable, tracking that you did so. Not a big deal in the US as it's not horribly expensive but with Canada Post - it's insanely expensive to get tracking numbers on parcels going outside Canada.
So many people blindly believe they're protected, and to a certain extent they are, but it's going to cost you. Is it worth spending upwards of $50+ to send back your cheap Chinese $5 product? Of course not! Who in their right mind would do that???
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