While everyone is making money on the Indian story, so is eBay. And hence welcome to PaisaPay.
But unfortunately, this has been made compulsory for all sellers, transaction fees are very high (added to the increasing fees of eBay in India), it does not give any guarantee of default of buyers (and only to sellers), and apparently offers no clear advantages to sellers.
I do not think eBay will make a change on this 'cash cow' for India, at least till the time there is some competition that can offer a better value to sellers.
I am not a frequent seller, and use eBay for selling personal extras which may be of use to others. Unfortunately, time and again, people bid and do not honor the bid terms or ask for renegotiation - eBay cannot do much about it, in fact nothing about it. Then why should they charge such hefty fees?