I think I saw in an earlier thread that now sellers have to explicitly opt out of it and ebay is planning to remove that opt-out option.
From the seller's point of view it is a great program - you keep dealing only with the fairly well known and predictable domestic shipping, any problem beyond that is between ebay and the buyer.

It looks like the buyers are quite unhappy with the deal ebay is offering them, but unfortunately the only option is to simply not buy. Ebay does virtually everything they do in pursuit of more money, so if this program is so bad for one of the parties that it decreases their profit they will either change it or kill it.

I personally think the sellers and the buyers should have multiple options to choose from and select the one that works best. For example if I sell things with a huge profit margin I may want to maximize my volume and assume the risk of lost/stolen/damage/fraud into the cost of doing business. But if I am not making money and don't want to take an occasional loss I'd rather only deal with customers who are willing to assume the risk themselves, either by paying the higher premiums of expensive shipping, or by waving any option for a charge back.

The thing is that ebay gets to set the rules for using their platform and they do it based on how much money those rules make them.

If I was living abroad and was buying a lot on ebay I'd research the postal rates of insured shipping from US to my location and if they are much better than ebay's global shipping I'd tell the seller that I am willing to pay for that fully insured shipping so that they don't have to cover any losses and would prefer if they offer a direct shipment to me instead of to ebay's program. If I'm a seller I'd be more than happy to accommodate a buyer if it doesn't cost me anything (e.g. if they ask me to send uninsured they are essentially taking money from me because they are getting all of the savings from transferring the risk of loss/damage on me).