The idiots over at PayPal stand behind their "policy" and refuse to acknowledge the fact that there are sometimes unusual cases that don't fit entirely under the letter of the law. Inevitably when a "call" needs to be made, it's in PayPal's favor, and fvck the customer.
This is unfortunately symptomatic of today's society - don't worry about screwing this one guy, because in the grand scheme of things he doesn't matter. All powerfull eBay and PayPal will have PLENTY of happy customers so all is good.
I got screwed, but it would have cost me too much to get my money back, and PayPal knows it. So what do they care.
They only joy I can get out of the situation is the knowledge that I'm only out a couple hundred, and that I've learned from my mistake, and that I will NEVER eBay/PayPal again. And that I've got a better job and make more money than that dick over in customer service ever will.