I guess my perspective is somewhat shaped by 12 years of having no "horror stories" to share. Maybe I'm just lucky, but I've never had problems with account freezes, DSR ratings, insurance complications with USPS, etc, so I have no basis to revolt. Furthermore, I've always used Paypal as a second bank account, especially when money market interest rates were high, so I've never feared having my account frozen with my hard earned money just sitting there. And I would be interested in learning more about the circumstances that led others to have this happen to them, because it seems odd to me.
As far as shipping insurance, I've always assumed that responsibility as a seller. Every item I sell above $20 is insured by USPS and I will usually adjust the auction or shipping price to help recoup it. Think about it...if you order a case of cards on Blowout and get free shipping and UPS drops the package in a pond, who assumes the responsibility? Certainly not you. It would be Blowout's responsibility to replace the package and then file an insurance claim with UPS, and if insurance wasn't purchased, BO would be out of luck. They would never say the customer was responsible, and neither would any other mail order business.
This is one of those situations where we all have a different view point and each seller has their own ideas of how things should be. It's no different than politics. I enjoy the debates though and I wish luck to anyone who is able to solve the eBay problems and find something better. I love this hobby and enjoy posting on these boards, and enjoy reading everyone's comments whether I agree or not.