Not true. Ebay has completely divorced itself from PayPal and that has opened up a wider range of payment options for buyers (they can still use PayPal, though). If you sell something on eBay, they collect the money, and they issue the 1099 if you cross the threshold. PayPal can still issue a 1099, but not for eBay sales. If you operate a business independent of eBay, and use PayPal for payments, then yes, you will get the 1099 from PayPal.
I understand that they are separate entities. I used to sell on eBay, but now I merely buy.
Are you saying that if a seller receives a 1099-k from Paypal for gross sales receipts, that the total will include everything processed through its system EXCEPT the eBay sales?