Salama-
(Sorry, I seem to be jumping in on all your posts, today.) 

A few notes:

• PayPal is the fourth-largest payment processor in the world behind Visa, MC and Discover.  PayPal directly services (can accept payment via CC from)about 60 countries and indirectly services (can transfer PayPal account to PayPal account) over 190 countires.  Which were you targeting beyond the US?  https://www.paypal.com/cgi-bin/webscr?cmd=_display-approved-signup-countries-outside
   
• There ARE people who are turned off by the idea of paying via PayPal but that mostly stems from a common misconception that you are required to have a PayPal account in order to pay via PayPal (only the seller needs a PayPal account).  When I set up PayPal solutions I include language that clearly states that payment accepted for any major credit card with no PayPal account required.
   
  Optionally, you can decide at any time to move from the basic payment processing model to the next level of processing (where your site is the payment front-end without transferring buyers to PayPal).  If you make your site the front end then users never need to know that PayPal is involved.
   
• PayPal has multiple checkout processes -- the most basic one (that you referred to) involves handing the customer off to PayPal.  This option IS simple (as you said) and it's worth noting that the process offers the additional advantage of fully removing you from handling any sensitive payment information -- you're effectively shielded from liability if the customer CC info is ever stolen.

If you do a small volume of sales then PayPal's "pay-only-for-what-you-use" model is very competitive on fees compared to payment processors that charge a minimum per-month fee whether you sell anything or not.  I could go on and on (I happen to be a "PayPal Certified Developer") but, in short, PayPal is a good solution as long as you make it clear to buyers that they pay with their credit card just as they would on any other site -- no PayPal account needed.

-mamlin