There are plenty of people who refuse to use Paypal. Google "Paypal Sucks" and read some of the horror stories. Poor customer service, locking down accounts for long periods of time with no explanation, high fees, etc.
On the other hand, it's really convenient and makes these sorts of transactions easier.
I wouldn't assume that just because someone won't accept Paypal, that they are in some way shady.
I can see that, but as a new seller you would think he would want to provide some peace of mind to prospective buyers.