This isn't 'new' and has been in place for several years now. But it is important to know what effect the various choices will have upon the artist / recipient of the funds.

When in doubt, artists can use the invoice option to send an invoice to your customer and have full control over what is in the ticket. That's the safest way overall.

What's new is that if/when PayPal finds out about people using "gift" for goods/services to avoid the fees, PayPal will slap a $2500-per-incident penalty...

Yeah, they have already explained they won't be charging that fee. There is a lot of misinformation out there.

This was targeted at people selling 'adult services' through Craigslist and similar. Those are what the site is going after. They don't really know what to make of furry art, and so far are treating it as artwork because if they did impose fines, it opens Paypal up to massive lawsuits with no defense. When a company spins off like Paypal is doing, they don't want to get the reputation of intentionally discriminating against- well, anything. It becomes a huge legal liability that they do not want to deal with.

In the end, it's much ado about nothing.