Paying With PayPal And Asking For No Fee's

My opinion is this is not dishonest at all. The 3% is the purchase of insurance. If you don't choose to buy the insurance, then send as a "gift/friend".
I have bought many things from FABO (even though my feedback score doesn't reflect it) and never have been scammed. Most of my transactions have not been a lot of money, and I've sent as a "friend" because that's how I see most of this site. I chose not to buy PayPal's insurance. That's how I see it anyways.
Trust me, Paypal makes a lot of money off of what I've sold on ebay, and continue to sell.

I don't need a crystal ball to know its just a matter of time. And afterwards all that trust disappears in a heartbeat, gone forever. The only variable is how much you loose / how deep you're screwed. For me it was 80 USD, many years ago. At that time I was alllll bent outa shape over it. In time it became a valuable lesson learned in my mind.