After the negative feedback, we went through the appeals process again and this time got somebody who actually understands the situation and they reversed the decision and removed the negative feedback. Seems like if you stick with it, they will eventually come around and do the right thing. Too bad their default attitude seems to be so bad.
A few months ago, I sold a small flat rate box of empty bullet cases. These were the steel kind with berdan primers and they were rusty (can't be reloaded). They were sold as craft supplies. Ebay removed the listing and so I called them. I asked why and they said no bullet components or parts that can be used to make a bullet. I explained that these are rusty steel, not brass and have the wrong kind of primer for reloading. They are not able to be reloaded at all. Then they said, "well, you still can't sell them because there are international regulations that would make it a crime to send these overseas". The lady told me that since it was obvious that I wasn't intentionally trying to break the rules, there would be no consequences. Ok, so then a couple of days later my account gets suspended. I call to ask why and they say it's because I was selling ammunition. I explained the whole thing again and that the lady (even gave her name) said that there were no consequences and the guy said, tough, you are suspended and if you do it again you will be removed as a seller. This is the treatment I get. I give them too much money to be treated like this.