I can't imagine Americans tolerating Euro prices or vice versa. This way, everything's priced in points and we're happy.
I'd very much tolerate USD prices since it's usually cheaper. I buy all my physical video games from the UK because the conversion rate saves me about 20-30% for new games (Portal 2 Xbox360 - German Amazon 55€ - UK Amazon 42€) even after the German VAT is added. Also I don't have to deal with the terrible dubbed versions. If the points were any cheaper to set off the differences I'd be ok but that's not the case. 2000 MSP cost about 25USD (17€) as far as I know. In Germany 2000MSP cost 24€ (34USD). Basically I pay 30% more for the same games on XBL and it's the same files transferred through the same pipes. If you really want to have an international "virtual" currency you'd have to adjust it across borders to make it fair. Granted there are some taxes incurred but those are not even close to justifying this discrepancy.
I see no reason to use paypal on a site other than 'someone thinks paypal is the only way to go'.
That's what I'm talking about. It's not like there are no alternatives but it's become the Internet Explorer of ePayment. It's the first thing most people see and never bother to look any further.
To the systems programmer, users and applications serve only to provide a test load.