I would give a giftcard if one were available. I'd buy a $30 card for $30. If one weren't available, I sure wouldn't pay a company $1.50 to set up a hoop for my friend to jump through.
You already said (http://news.ycombinator.com/edit?id=2351451) you'd give cash in that case. It seems clear to me that you're just trying to invent reasons to attack Giftrocket.
That's unfair. I have no skin in this game. The example I gave originally addressed the establishment with no gift cards. Then I had to respond to the claim that Giftrocket is trying to replace gift cards, so I said I'd always pick a gift card if one were available, and if not, I'd give cash over paying a third party.
You'd use the service. I wouldn't. I argued why I don't see anyone using it. Don't write me off as an internet misanthrope trying to ruin everyone's fun.
edit: I'll be more constructive. I'd consider using this if it somehow felt like a gift card instead of a deposit to my paypal account.