I'm totally with you on this.
The first item i sold on eBay unaware that paisapay charges are so exorbitant, I ended up making losses.
I think for low priced items its still ok. But camera/cell phones you're better off providing "Buyer picks up and pays" and that way you don't have to paisa pay fees (only Final Value fees will be applied if I'm not wrong).
Provide additional discounts on buyer pick up. 🙂