Here are a few things that I recommend checking first. If you need me to check, I will need admin cp login details.
Does the payment logs show any errors at all?
After you setup your Paypal gateway, there is a link in the top instructions. Could you please try opening that link while logged out of your board? That will ensure that Paypal can access the Donations app.
Have you checked that the IPN is enabled in Paypal itself?
There was admittedly quite a few bugs just before this most recent update. v3.3.0 fixed nearly 2 dozen bugs and also added in IPB 4.2 compatibility. If you needed a demo to confirm what the latest version does, let me know.
If you could point me towards the issues that concern you in the review I can then confirm it's been fixed or not. The only 2 negative reviews I can see currently are relating to the look of the Donations app. I guess that's something subjective to who is viewing it. I'm by no means a designer but if you have any specific instructions on UI improvements, let me know and will consider it. The other negative review is only half correct as the Donations app does support rewarding promotions based on total user donations as well as individual donations.