. . . I'm not crazy about the fact that you have to offer Paypal as an option for payment, but I don't think eBay's fees themselves are too high. I get emails from them all the time saying list 5 things for a penny each (fees).
Although PayPal is the primary method of payment (so those fees can be charged), I've seen (and used) wording mentioning if no PayPal, other methods of payment are available (like USPS Money Orders or cash with a personal pickup). Thought I read somewhere on their site that for high dollar stuff (like cars), PayPal is not required.