I completely disagree.
I use Allegro.pl(which is like Ebay,but actually was first to the market in Poland and is absolutely HUGE there, Ebay tries to establish itself in there but is without any chances), and both parties can leave feedback - and I have over 7500 reputation, both for selling and buying, and I have left more than a few negative feedbacks for a seller, only one of which resulted in a counter-negative feedback - and it was removed within a few days after I complained to customer service. Oh,and for the payment methods - they work with every single bank in Poland, accepting quick, instantaneous bank transfers directly from your account, no credit card needed,no need for shitty PayPal - but if you want to they will happily accept any credit card. Or as a seller they keep your money in your Allegro account, and pay it out to your bank account daily - without any additional fees. I have personally had so many problems with PayPal that I hate that company wholeheartedly.
Allegro.pl is a good example of how you can get auctions right. I think they watched eBay closely and drew conclusions — they place a HUGE emphasis on fighting fraud.
As a result, it works extremely well. I have >150 transactions, both as a buyer and as a seller, with not a single problem. Oh sure, there is fraud, but it's marginal, and crazy stories like the OP's are unheard of.
This is why eBay, in spite of many efforts, is still pretty much nonexistent in Poland, while Allegro's traffic is booming.