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Paypal's goal is to protect the person giving the money, not the person receiving it.

Yes, that's not ideal for you as the merchant. Welcome to being a merchant. Shrinkage exists.

Not in my case. I bought an iPod over eBay a few years back. It was delivered faulty. I chatted with seller who said send it back. I told him I would when I "got back", which I did. Sent it registered. The guy stopped answering mail when he got the device. His reputation started to plummet very quickly, mine was 100%. PayPal refused to investigate because I notified them too late (about 6 weeks after purchase) despite emails, faulty item delivered and acknowledged. PayPal is a scam and I will never trust their buyer protection again. Http://www.paypalsycks.com/

How long do you think they should accept chargebacks? 6 weeks? 6 months? 6 years?

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