But my Godaddy rep provided his contact info and was happy to speak to PayPal on behalf of myself and Godaddy. PayPal actually said they didn't need to speak to Godaddy because the documents provided by the seller were authentic.

PayPal's buyer protection is supposed to protect against items that are "significantly not as described" which this clearly was. So yes, in that respect and by PayPal's own stated guidelines, it is fraud.