From my professional opinion from working within PayPal I would never pay for an item via paypal as a "gift" payment because this means that the buyer waives all rights to PayPal's buyer's protection policies.
This means that if the item doesn't arrive, isn't what was described or is damaged, by using "gift" payment option you have no come back via PayPal. As the buyer protection policy is a key reason for using PayPal I would be very adverse to making payments that aren't covered by it.
The fees are generally accepted as being picked up by the seller because they are the one trying to make money through the convenience of using PayPal as a payment method, so sellers are usually advised to price their products accordingly to include the fees expected.
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