If I have known better that there is nothing PayPal can do to protect sellers, I would never enter any of transaction using PayPal or eBay. It likes they are telling you, hey, we charge you a fee to sell your item, but if the buyer takes it and run miles away, it's your job to chase after them, it's will be a fun game for us (PayPal and eBay) to watch, we will cheer for both of you to see who win.
I know there are stories from both sides, both buyers and sellers sometimes got cheated too, and they should be fair for both parties. I really don't know much about cc charge back yet, I am going to know very soon 'cause I have a trouble maker in hand to deal with right now, but can you sue the cc company if they didn't take a proper step to make sure things are right? How can PayPal just give them back the money w/o consulting you? It's your account and your money anyway, and they are not regulated by government, I don't think so... Even if they are, do you need police involved if you consider the seller is selling fake or criminal or anything... I mean, I am already in their game, the run has started, I just have to run... hahahaha...