Classifieds payment (buyer willing to pay fee for regular PayPal vs F&F)

This is my concern. Even if I know / trust a seller, that's only part of the issue. The tax angle is real. I don't see it lasting. If ( example ) , I buy an amp , it gets smashed, I want out of the deal. The seller is left with damaged property . UPS plays hardball for a decade. There is no protection. That scenario doesn't fly. Gov screwed that all up. Options ?
It's the seller's responsibility to cover his ass in the event the shipping carrier damages the package. The seller pays for insurance, packs the amp well and take pictures/documentation. In your scenario, if the amp gets severely damaged and the buyer doesn't want it at all, the seller refunds the buyer and then deals with the shipping carrier to get their insurance claim.
 
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