Yes and no, there are other clearing houses that are actual FDIC insured companies such as Pro Pay (which is owned by Wells Fargo if I remember corretly) but they are VERY expensive. There are annual fees plus final value fees. You also have Money Bookers which is owned by another bank, I want to say HSBC or Chase, their fees aren't nearly as bad as Pro Pay but there set up is odd. I started the process then decided not to follow though as the process time seemed never ending.
With that said, you don't have to have a Pay Pal account to buy, you can use your CC as a non-account holder but you cannot receive money that way.
I have tried using Craigslist, but I do not like people coming to my house. I have a pretty good sized collection of gear and as I mentioned I just don't want strangers coming to the house. You never know if you have some sort of pyscho or theif scoping your place out. If you go meet someone then you could possibly become a "victim"...you just don't know who you are dealing with. Whenever I do Craigslit posts, I usually meet someone and I take a 2 friends with me one is my neighbor that is 6' 4" 350 and the other is slightly smaller, it is compact and easily concealed H&K 45! Again, I know it sounds paranoid but I'd rather play it on the safe side. Living on the border between Texas and Mexico, it not exactly the safest place to be.
Here is a pic of half of my gear mostly guitars, the rest is pretty much my basses or duplicates of the gear in the pic. I play guitar too, a buddy was over and we were just cleaning up gear and decided to take some pics.