I am a little concerned about this. While I do some consulting work for large companies and we do 1099s anyway, I also do a lot of very small projects (mostly helping other developers get started or get up to speed on something I know more about than they do). For these little jobs that are paid for via PayPal, now small customers need to do a 1099 with me - a hassle for them probably means not as many little 1 week jobs.

Also, as a consumer of goods and services, now I need to do a 1099 for Amazon, people I hire for small bits of work, the local electronics store, etc.?