THERE IS NOTHING IN THAT ANNOUNCEMENT THAT SAYS YOU CANNOT SELL WEB HOSTING WITH GOOGLE WALLET. AS A MATTER OF FACT WHEN YOU SIGN UP FOR WALLET QUITE THE OPPOSITE IS INDICATED.
I HAVE GIVEN YOU AMPLE OPPORTUNITY TO SHOW US WHERE GOOGLE SAYS SELLING WEB HOSTING IS PROHIBITED. YOU HAVE SHOWN US NOTHING WHILE DISPARAGING ME.
FOR THE HONEST AND INTERESTED READER, I AGAIN POST MY DIRECT FINDINGS:
According to Alice at Google (1 855 WALLET6) when you sign up here: http://www.google.com/wallet/business/ you'll be taken to the API info page. On that page select Digital Goods. Fill out form and select Internet, Network, and Digital Media -- don't select Services -- as Primary product type. You can now sell web hosting and domain registration
I've included an attachment showing how a web host should sign up.
If "Internet Products" does not include hosting and domain reg, I don't know what is. There is nothing in the TOS about web hosting. There is nothing in the manuals about web hosting. There is absolutely nothing I can find in any Google documentation that would prevent a merchant from selling web hosting. Maybe there is somewhere, but no one can find it for me.
I can now sell web hosting from Android devices