Terry,
I went to the point of the "Pay Now" button. Did not click "Pay Now" and it did not ask about shipping or "is billing the same as shipping address", BUT that product is a download product so there wouldn't be a shipping address shown.
On my "Review your order details" page, it lists a shipping address section, but uses the billing address as the shipping address. It does offer a rather insignificant little reference to the "Change" option at the bottom of the listed shipping address; which I would be concerned that some customers might not notice and cancel because they don't realize that they can change that area! Customers that are purchasing a gift for someone might want the purchase to be shipped to some other address, not their billing address.

It just seems like PayPal could have done a better job with this cart with very little effort on their part! As I said before....it may be a Free cart, but I'll wager that it brings them a significant amount of revenue!