I live in Europe and experience the same thing; Neteller converting USD into CAD and only then into Euro's.
Did you know that if you send then an e-mail in which you complain that you have to pay both a 2% comission fee and lose money because of the currency conversion, that they will do you a refund of some of the costs? They do it for me every time, it doesn't cover all the costs but it's better than nothing...