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I love how people assume that this is Paypal's forcing Smashwords.. that they are taking it for granted that this is the way it is.
Smashwords CAN switch to someone like Dwolla for US sales.. or any of the other payment processors who have indicated that they are HANDS OFF. They can have people buy "Smashword Bucks" much like FictionWise did with their internal scheme. In researching this, Smashwords is not the only company that has been hit by this, and the solutions other companies reached allowed them to keep selling their "questionable product" and mollified Paypal.
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