A) I have managed to make some shipped transactions happen via Craigslist by just being honest, pleasant and prompt with payment.
B) Even though some prices may be high on Craigslist, you at least have the freedom to make offers or even suggest trades (which I have done). In fact I just traded a couple old DVDs for a VIC-20, some games and a tape drive... There was a price, but he was open to trading instead and considering these DVDs were in a box to be traded/sold anyway, it worked out very well for me!
I tried that to get a video card out of the hands of a guy in Denver (I live in New Jersey) and he wouldn't hear of it. He wanted cash in hand and he wanted someone to come pick it up. No Paypal and no shipping and it was only for $15 bucks. Geez. It's not like he's trusting me for thousands of dollars in merchandise. I even offered to give him my ebay id so he could verify that I was a trustworthy buyer.