Actually, it doesn't appear it is against TOS any longer. I checked the AUP a few days ago and it isn't there under prohibited transactions. Unless PP is including it in a very broad sweep in the AUP under exclusion of "
tobacco products." When it comes to e-cigs stuff they aren't spelling it out.
But on a practical level it doesn't matter. I can only think of one US vendor that did take PayPal and it involved secret society hand shakes, hush-hush payments and conversations via e-mail.