In Germany there are two separate and distinct names, Batsell and Batzel. They are easily confused because they both mean "money". They are pronounced the same and have the same origin--1460's slang for money based on a Swiss coin of the era. However, Batsell is Prussian from the Ostfalen area. There was a Jacob Batsell in 1526. Batzel is north German and non-Prussian. It is the far more common name. Batsell is one of the rarest names in Germany. (This data is from a book 100,000 German Surnames, which is at the University of Chicago).
A computerized search (by Sam Batsell) of German phone books reveals over 100 Batzel families in Germany today. There are no Batsell or Batsel families. There are about 200 Batzel families in the US today, virtually all in Pennsylvania, Ohio, Minnesota, Wisconsin, New York and Illinois. There are 12 "Batzell" families, a most un-German spelling, 61 Batsell families and 48 or so Batsel families. The latter two groups contain a number of African-Americans. (In the 1850's the male descendants of John Batsell owned about 80 slaves. If in-laws were included, the count would be much higher).
"Batsel" does not exist in Germany. Hence, it has to come from one or the other name. Despite several instances where early Batsells used or were spelled "Batzel" and numerous instances of "Batsel", I think that Batsell is the correct spelling. Most of the various branches of John Batsell's descendants use "Batsell" today. However, the descendants of William Edward, and two of Edmund Eli's three sons, use "Batsel."
German names were heavily misspelled in the 18th and 19th centuries in the US. The Nelson County deeds usually spelled Batsell as "Batsel" if the family was buying property and as "Batsell" if they were selling. In those days the seller controlled the spelling.