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If you use their trademarked name in your domain and attempt to copy their business or trick visitors then yes you should be scared of them. But if you use their name in a way that breaks no Trademark laws then they would absolutely waste their money on court as they would have no case... It...

I looked up PayPalSucks whois and they are registered out of Kirkland, Washington. I'm sure they have received cease and desist letters from Paypal, but they appropriately ignore them as they are breaking no rules by using the name in their domain.

That's exactly how they want you to react to a scare letter...

Many of us have received cease and desist letters for our domains that have a company's trademarked name in it. The process typically consists of a company's representative or lawyer sending the C&D letter via e-mail or post and threatening legal action if the website is not taken down or...