Resolution Denied - Virtual items dont count?

[snapshot]

I purchased an ebook on Aug 12th and have not received it since. The site I bought it from said to allow 2-3 days for delivery, but 2 weeks have passed since then and I never received my ebook. I have since purchased it elsewhere. I've contacted the site asking for a refund (using their own contact form) and my request went unanswered. I emailed the address to which payment went to and again my question went unanswered. I contacted their customer service team on their site and have been ignored. I did a domain WHOIS search to see if I could find anyone's info and have called/email the site administrators directly and was again ignored. I filed a dispute with paypal and waited almost a month for a resolution. I’ve been keeping track of the disputes, and the seller apparently NEVER responded to paypal either. I thought this would be an easy case, but this morning I got an email from paypal saying that they have ruled against me saying that since the product was not tangible, they cannot give me a refund. Can they actually take that stance? I mean, it seems like a very stupid excuse to not give a refund. I realize that this probably wasn’t going to be easy, and truthfully I would be angry, but I wouldn’t mind losing this if it were a legitimate dispute between the both of us (as there would ultimately be closure), but to dismiss the case for the non-tangible reason seems a bit unfair. Correct me if im wrong, but aren’t most of paypals sales for non-tangible/virtual items? Paypal is WIDLEY accept at almost every site, and I purchase a lot of ebooks/audio books using paypal. For no real protection [as stated above] you’d think they’d ban sales like these.

Now I am a very calm and rational person, and I am not going to go off the handle and start threatening lawsuits and making bold accusations towards paypal (threats NEVER get anyone anywhere), but is there anything I can do at this point? This doesn’t seem very fair and I have a hard time accepting the “too bad, you lose, eff you” response I’ve gotten from both paypal and the seller. Any help would be greatly appreciated. Thanks!

[profdata]

In the past it mattered if the item was tangable but for over a year it hasn't mattered.

Call paypal again and let them know the Paypal user agreemet was changed some time ago and that intangable items are now covered. 

A Paypal rep posted to this board last week agreeing that the item does not need to be tangable, when I brought his up 

[liuchess]

Can you show me the section that states intangible goods are covered?

[redpower]

Changes to the user agreement effective November 1st intangible items, including digital goods are not covered in buyer protection, or seller protection, just a heads up!

[Angry_Customer]

I was also denied a refund on a virtual item.  The CSR supervisor James #41748 may not have know of the new policy, if it exists.  Regardless, Pay Pal, as any bank conduit, has the authority to charge back the vendor if it wants to.  Please read my post.  I am angry at Pay Pal for siding with the vendor and calling me a "liar".  Pay Pal is calling me a liar because they are saying I must have received the product because the vendor says so.