The payout function can be contingent on either the buyer or arbitrators releasing the funds.

How long is the discovery period? What about "returns"? What if the arbitrator is working with the seller and scams me? When does "I have a big gun and I am not afraid to use it" come into the function?

The arbitrators can be determined before hand or rely on an external contract that offers arbitration services.

And how much will those services cost? Who vets the arbitrator? What is my recourse if arbitration fails?

The possibilities are truly endless.

Yes, I agree. This is just built for a place that does not yet exist.