Certain members, like Konrad, have gained some respect around the forum and are trustworthy (in my opinion). He doesn't deserve to be called out. He recently sent me a $70 payment, as gift, for some thru-hiker down. He basically paid for my word, which quite a few people do around here. If you don't keep your word, people will find out and you will be exiled from purchasing/selling. However, I assume he is not saying that you HAVE to pay this way. He is basically stating that he doesn't want incur fees on this transaction and that YOU have to pay the fees (goods transaction) or use the personal/gift option.
Paypal charges 3% on every goods purchase to the seller, not the buyer. So all you have to do is calculate the total price and multiply it by .03, in this case being almost $5 on a $165 item.
I sell things from time to time and wish people would understand that the SELLER, not the buyer, takes a considerable hit in paypal fees. I generally pay as gift on small ticket items and pay the 3% extra in fees on higher ticket items. Around here, there aren't rules against paying with the gift option, but over at Hammockforums.net they have explicit rules against gift payment.
In the future, if you're skeptical of buying from someone, I suggest doing some research about their activity in the forum before putting someone on blast.