We've always had to issue 1099s for any contractor we pay more than $600 to. If you earn income, you're required to pay taxes on it. Seems to me the outrage is over closing a loophole.
A lot of people use these payment services to sell used personal goods for less than they paid (often, significantly less), which is not income. But now, they'll need to keep documentation of cost basis of their household goods, in case they sell them later.
Even if you're selling used goods for profit, only part of the sale is income.
I run a small resales business, and I do track COGS on sales. I often sell my personal items as well, and when I do, I just put the COGS as the sales price.