And then you have to find a seller for BTC and deal with that hassle yourself.

Ok, but the buyers and sellers of BTC are discriminating very little, against perfectly legal activities, in the way that PayPal is doing it a lot.

If I buy or sell BTC from coinbase, for example, they aren't going to care if the money came from the porn industry or not.

That's the difference. Apparently, for some reason, PayPal is shutting down people who are doing perfectly legal stuff, but coinbase isn't, to the same degree.

That is the practical advantage, right there.

I'm in the US and bought perfectly legal supplements from a US company using BTC from my Coinbase wallet. I and several other customers of this US company had our accounts terminated by Coinbase. This US company we bought supplements from also accepted and still accepts major credit cards. Coinbase certainly cares.

I don't want to be "that guy", but Bitcoin being pseudonymous is a definite downside when it comes to losing your account. That's why I greatly prefer Monero, especially with xmr.to letting you transparently send Monero to Bitcoin addresses.

Places like Coinbase are increasingly implementing KYC and will "care" just like other financial institutions. It's not hard to see when money is coming in from a known account or a tumbler.

Unless other things were priced in BTC...

Yes, if everyone used BTC that would solve the problem of people using BTC.