Basically it goes like this:
If the seller doesn't "list" local pickup as an shipping option when they make the auction page, they shouldn't allow local pickup (not just writing it in the description, I mean). Ebay/Paypal technically requires proof of shipping if that is how the page was set. Otherwise it opens the seller up to a "not received" case potentially.
In your case, I would take the cash out from the bank, and go to get it. You could pay with Paypal, but that would be redundant, and the seller would lose on fees (3%). You could try to bargain to a lower price before hand if you do the pickup, if you and the seller both agree to cancel the sale on Ebay, (thus they would't have to pay the Final Value Fee from their pocket, but that is a moral decision (since they used Ebay's services).
There have been lot's of folks who have abused the rules from Ebay over the last 15 years, and this is why they made it so much tighter. There were several cases back in the day because of the looseness of the return policy. I used to send Post Office Money Orders, to pay for items, about a decade ago, lol. Never got burnt, but there was literally nothing I could do if the person didn't mail the item, short of going to the house address I mailed it to...