I am sure a nicely worded post will be made soon
For now this will have to suffice.
Asking for paypal gift option as payment is a no no. Just because the site rules do not say NO PAYPAL GIFT OPTION, does not mean it is ok. To use this service, other than getting a gift is defrauding paypal, and illegal. Illegal activities and fraudulent practices are both topics in the site rules.
The pay with paypal gift deal, has been an issue for a while. It seems to be getting out of hand now. If you do not want to pay the dollar or two fees to use the service, than perhaps you should go back to using money orders.
So in conclusion, if you ask for someone to pay using the gift option you will likely find your self with a suspended account. If you knowingly pay using the paypal gift option, and then get taken for a ride, sorry.. the seller will be removed but its your own issue.
If you have an ad running now that asks for payment via gift option, you should probably edit it. Just saying