[PayPal Standard] - Seller Protection Not Eligible v2.0.3.1+

Hi,

One of my clients was getting orders from paypal with status: "Seller Protection Not Eligible - We have no postal address on file".

After looking into the issue turns out that file pp_standard.tpl contains the following line:
<input type="hidden" name="no_shipping" value="1" />

Looking at github, James added this line under commit: Added PayPal no shipping flag.

So my questions is, what's the point of this line and why is it there now? (Perhaps this flag should be more dynamic, and instead controller should look if any of the products requires shipping, or if for example shipping method "Pickup From Store" is chosen. In which case the value should be 1, otherwise 0)

In addition, if this flag is removed, the payment also defaults to "Pay with a debit or credit card" instead of "Pay with paypal account", which is what my clients wants.

Is my client using wrong paypal payment method for his store because he requires shipping?

Thanks.