Isn't there some weird rule in their ToS that you can't add money to cover PayPal's fees?

It's a matter of semantics. Adding a surcharge is against the TOS but raising your prices to offset the fee isn't.

So you basically have to say "hey, I am raising my prices by one dollar FOR ABSOLUTELY NO REASON" and you're safe?

You don't have to tell Paypal the reason you're raising the price of your items. It's none of their business. Adding a surcharge on top of items you're selling is though since it's a separate charge.

This is essentialy my notice to commissioners that I'll be raising my prices slightly. I may need to word it better in the TOS, but for all intents and purposes that's where it's listed so people can reference it later.

I guess it's kind of a grey area considering PayPal can't rightly tell me what to charge for my services, but they can regulate offsetting their fees?

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