as a customer for many years, and going thru many different hosting providers over the years, I don't even consider a host if they don't accept paypal.
reason being, the hackers who setup their own reseller hosting businesses just to take peoples credit cards. I mean, I am sure there are plenty of hosting providers here who don't do such activities. However, one can never tell for sure...
Its not like buying from Godaddy, Google, Amazon, or some place you know is reputable, alot of times people goto a web hosting provider having no clue at all how long that host has been in business, rather the host is in the US, or in isriel, , so when it comes to billing you can never be sure who is reputable and who isn't.
I say, go with paypal, because thats basically what consumers want.
you'll get more business if you offer both, or if you can only afford one
just go with only paypal, that way your covered either way.
I got my credit card # stolen a few years ago from a bad host, and I know from my personal experience I will never go with a host again that doesn't offer paypal, because it took me a long time to get all that straightened out with my bank. Since I used a Debit card to pay with, the charges were being taken directly from my checking account, which was a bad idea I know, but thats why I prefer paypal now, because you just never know.. In fact, with browser hijacking going on these days from the spammers, you never know if, say, amazon in your address bar, is really amazon, IE is nutorious for that, and I am sure the LAST thing any customer, or even sales rep would ever want, is to have your companys bad name dragged down because some spammer hijacked your site to theirs. I see it happen everyday these days,
so for me, its paypal, or nothing..period.

I don't care how 'good' the plan is, it can be something rediculous, like,
a dedicated server for $29 a month, I don't care, if the host does not accept paypal, I go somewhere else without giving it a second thought
hehe, besides, if a host ever did give away a dedicated server for $29/month and didn't accept paypal, first thing I'd be thinking is "yeah right they just want to steal peoples CC#'s thats WHY their prices are so low" see what I mean? it gives the company a bad rep right off the bat.