The only way I would sell an expensive piece of electronics would be via local Craigslist, in person, probably for cash that I'd prefer to witness the buyer withdraw out of an ATM.

Just like anything else, selling in person to a stranger is not without risk either. I wonder how the frequency of robberies associated with Craigslist sales compares against eBay fraud like this one. Personally, I'd rather get hit with a chargeback than a baseball bat.

Sure, but I wouldn't ask the buyer to come to my house at 2 in the morning, nor would I agree to meet him in that alley behind the biker bar, either.

I'm curious why you think you should see the buyer actually withdraw from an ATM? If I was a buyer and the seller asked to follow me to my ATM, I'd be concerned.

I actually probably wouldn't do that, but it would be a pretty good hedge against receiving counterfeit currency.

There are better ways to hedge against that.

http://www.amazon.com/s/field-keywords=counterfeit+money+pen

ah... I had not thought of the counterfeit money angle.