* Banks are still shitty and unwilling to actually compete, so Paypal has its market all to itself.
* Because Paypal does not fear disruption or competition, it is not worth their time to invest in good customer service. They know you're stuck.
This is pretty much the same as the stories about trying to get customer service from Google. There are no effective competitors - so, their accountants and shareholders say, who the fuck cares if customers complain? What are they going to do, go to someone else? Doing so would harm the customers more than it would harm the company that they are abandoning.
I use the phrase "not worth their time" even though it implies things about the employees of the company which are not true - I use it because it is true of the company itself as an entity. It's a corporation - it's a sociopath. So it is basically incapable of providing good customer service as long as the return on investment of good customer service is negative, epsilon, or invisible. The employees, as people, probably do want to provide good customer service! But when it comes down to the human, humane desires of a corporation's employees conflicting with the sociopathic requirements of the corporation itself, we only need a brief look at the history of commerce in America. Put your money on the corporation's interests winning every time.
PayPal (and Google) will keep giving customers the finger until the thought of customers leaving actually scares them.