Tom and Robert,
This is a bit confusing since ebay and PayPal have been so tightly linked over the years, and ebay had originally bought out PayPal way back when prior to later spinning them off again. It does seem like a move for even greater control over ebay buyers and sellers. One thing that will be lost if PayPal is eventually barred from use in ebay transactions is the "PayPal Buyer/Purchase Protection" plan. Although I am not a fan of PayPal (but I use it), at least there was another option for resolution of issues using PayPal rather than ebay itself. Once PayPal is gone from ebay, only ebay will be making decisions about issues and we all are aware of the nonsense that takes place there at times.
I am thinking ebay is drooling at being able to instantly get our money on a purchase, but will not be so quick to make payments to the sellers so as to grab a bit more interest payments along the way. Seems like they our cutting out the "middle man" (PayPal) for their own increased benefit, despite the BS ebay will spout about how this change makes things better for ebay buyers and sellers.
As others here have said, the consolidation of the end-to-end process to put it in the hands of one massive company will surely not benefit any of us individual ebay users.