We stopped offering paypal on our website earlier this year when these changes were announced and it hasn't affected sales at all.

Being able to easily refund customers at no cost to us is highly desirable as we want to provide the best experience to our customers.

As soon as eBay open up their own payment solution we'll stop paypal all together. They claim these changes are in line with the market but I can't think of anyone else who does this?

I think this is really going to hurt paypal personally, I know some other merchants who are pulling PayPal just like we are.