What he said! Paying through paypal wouldn't force his hand or commit the seller to anything he isn't already legally bound to do. I've had some problems with misrepresented and pseudo "new in box" items, but have been able to work out a compromise with the sellers to make it right. One even sent $50 back in the mail, about 20% of the bid price, after I threatened action (miracles do happen sometimes). No one wants it to turn out badly. No one lists an item on ebay hoping it will be a big hassle.

If you really want the bikes, perhaps one approach would be to offer something a little closer to a realistic value (assuming they are worth more than $1). Yes, he should follow through with what he laid out, but he gambled thinking it would turn out better and lost. You can try to hold him to a raw deal he obviously doesn't want and will fight against, or you could soften his losses (it's Christmas after all). Sweeten the pot a little with a compromise offer (outside of the ebay mail system or privately on the phone) and you might still get your bikes.

You are right and he is wrong. But the bottom line is (forget ebay and the rules for a minute...) Do you want the bikes and how much are they really worth to you?

If the bikes don't matter so much, then go ahead and fry his hide for being an ebay jerk.