PayPal is one of those necessary evils. I occasionally sell stuff on ebay and it forces you to accept PayPal payments as a method of receiving money, which is fine for me, at least I'm then protected against scammers by the PayPal seller protection policy.
That said, PayPal only have minimal details about me on their system in order to receive money from other people, the rest of the information they requested is either fictitious or not provided at all. I've refused to send copies of my driving licence to Paypal, so my account is in "limited" status (and has been for years) but it still allows me to transfer money into my bank account. In fact, the only thing I can't do while my account is restricted is close the account. Who cares?
They don't even have my "proper" bank details. My bank allows me to set up sub-accounts which give me a new and unique external bank account number but it's linked to my primary account. Paypal only have details of this sub-account which I only use for Paypal. If there is ever an issue, I can simply close the sub-account rendering that account number invalid, without affecting my everyday banking account.
Stuff them, PayPal don't need to know anything more about me. Not my date of birth, not where I live. Just my name (which is different to my legal name), dedicated PayPal bank account number and BSB.
I suggest everyone who uses ebay and PayPal in Australia registers for an
Australia Post Parcel Collect address. It doesn't cost anything and keeps your physical address private. You just get assigned a Parcel Collect number along with the address of the Post Office, so when you stuff arrives, you get notified and you go and collect it. For example, my Parcel Collect address (and the one you provide when you order things) might be:
Parcel Collect 12345
181 Castlereagh Street
SYDNEY NSW 2000