Agree to disagree I suppose.
Reselling is it's own monster and business so *shrug*
Plenty of people recently making money by buying things and selling them for more. Look at any high end graphics card or PS5 for a while there... Or look at things like garage sale resellers.
Sure it's not what your wife means to do. But she is making a business transaction when selling online. Paypal needs to be held responsible as a payment processor. If she was doing this with hard cash? Then whatever I guess.
I'm mostly worried about PayPal doing away with friends and family, policing it more or changing it soon because this new tax issue is going to cause even more people to use it to get around this new limit. Or more sellers using it as an excuse and scamming people since it won't allow charge backs or disputes. I rarely use it myself, but it will be sad to see what happens in the future.