Like any other business service, PP works for some businesses and maybe not for others. I'm in the category of a small home business making a hardware product that only ships within the US. PayPal has got me covered. They have the customer protections that people seem to like when dealing with a nearly unknown business. They let me run my business from a passive web page and an e-mail address. They offer USPS first class mail as a shipping option, which saves me a lot of money on shipping. The USPS website forces you to use priority mail.
Would I pay less for the same service? Sure. Am I aware of the horror stories? You bet. Do I explore other services? Yes.
On the other hand, a purely digital business that already has a website, and is moving stuff internationally? Maybe there are better options.