You are talking to staff who cannot modify the software nor are they at the level to pass the information on to those who can request software changes,nor do they understand this would affect all paypal sellers who sell digital goods,since more and more states are auditing internet sellers,you should post it on Ebay seller forum ,and get some responses. may be sign a petition and present to someone in Paypal.
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if he does not respond to a Paypal dispute,he lose. if he does,he would have to upload tracking number and Paypal will give him some time till tracking shows delivered
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unless your customers agree to wait that long,else they will file INR with Ebay or Paypal and you will be forced to refund in full. how did you pay your vendor,may be you can file INR against him? your account goes negative and Paypal will ask you to add some money to bring it neutral,if you do not ,then it would shut down y our account and send collection agency after you. you better call Paypal if they will set up a payment plan
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