People literally think that when paying with PayPal, merchants don't get to see any personal data, even though in reality PP dumps all payer's details onto a merchant, including physical address, even if there's no need for that.

Better protection is a valid point though. It's dead easy for payers to dispute a payment and merchants are basically forced to settle with the customers, because fighting disputes is very hard. On the plus side, meritless disputes on PayPal are surprisngly rare.