I get listings removed all the time!! , paypal wont hold the money at all and you can contact the buyer through paypal as it will have thier email address there and also thier ebay user ID.
I get roughly 10 items removed a week and most buyers dont worry about it but the odd 1 or 2 will respond to ebays vero email and ask what the email was all about as the email ebay send them doesn't explain exactly why the item was removed.
Yes you dont get feedback for items taken down as the buyer obviously cant leave it, but when they used to leave feedback them the item was taken down after you would lose the feedback also but ebay has changed that now and you keep feedback.
| 
