Paypal is absolutely fine - so long as you take the time to get your account setup correctly.
99% of the moans and complaints seem to be from people who haven't.
All Paypal are doing is protecting people - but of course people don't want to hear this.
Unless of course it is them who end up being scammed, in which case Paypal aren't doing enough to protect people.
Like Microsoft and many other company's - Paypal are damned if they do and damned if they don't.
So rightly so they take the attacks like water off a ducks back and go the protected way for security reasons and let people just moan.
If you have taken the time to get a credit/debit card correctly setup on your account you won't have these problems.
When I say correctly I mean you've been through the full process of having the card have credit made against it, checked your statement and then reported back what those credits were.
This way Paypal confirm you are the owner of the card.
The card is "authorised" and you can use their service at will.
An echeque is used when somebody hasn't been through this process or wants to use a card that isn't setup on their account.
The time to process is a lot longer and yes, the system can be open to abuse - there will always be people who want to scam you no matter what it is you are doing.
There is a short article on this here:
http://ezinearticles.com/?Avoid-The-Paypal-e-Cheque-Scam---It-Could-Cost-You!&id=334526
As always - the best way to deal with Paypal is only dealing with confirmed addresses/accounts.