Agreed. I had their service for many years (10+) with no issues until the one time I did. Turns out being a long-time satisfied customer of theirs doesn't mean they will go to bat for you.
They were happy to lose me as a customer over $125 of faulty (doa) merchandise a vendor refused to accept for return.
The convenience of PayPal is not worth losing the protections your bank's fraud department would normally give you.