Fraud prevention is hard, customer service is not. PayPal works hard at fraud prevention but totally abandons customer service. All they need is a few people who have authority to actually help. If a company the size of amazon can do it, so can PayPal.
Good customer service is expensive. Paypal doesn't sell itself on customer service for sellers, since it perceives (probably correctly) that those sellers using Paypal have nowhere else to go.
