Paypal works well for those that use it, however now that I do not use it, I find myself looking and buying from sellers that take DC. It is so much nicer and easier to change credit cards with each purchase as well as your ship to address.
As a seller, you just ship to the address stated in the order, and do not have to be concerned with whether it matches the paypal address. I have never had a dispute on Etsy, but when we sold across the street at the big auction site, we had a few. You were always guilty until you could prove otherwise. They froze the money in question at the very least, and sometimes more, and made it way too easy for a buyer to file a complaint and put a seller in a bad situation. It was like hostage negotiation at that point. Paypal had the money and knew you would do what they demanded in order to get it back.