PayPal has sales representatives and technical support people and you can actually deal with them, so I am not sure the premise is right...
...but the core problem is this argument is in reverse anyway: if I get banned from Bank of America somehow I don't lose access to the concept of a card that lets me pay for my Verizon account, and in the worst case scenario I can send them a check. I have had serious issues with Verizon paying for my account before (they both claimed I was behind on payments but would not accept money without a PIN number, which I could only get by verifying my address using a post card that would take forever), but it wasn't a catch-22 scenario where I lose my phone number as there is somehow literally no way to pay for their service again.
Are you sure about PayPal? Because I believe I have read quite a few pathetic stories -- similar in tone to the posted article about Google Fi -- about PayPal accounts being frozen with no recourse, for example[1]. And PayPal settled a class-action lawsuit on just this topic[2].
I thought PayPal's issues were on the receiver side rather than the payer side? Making payments seems OK, it's just if you use PayPal to receive payments, they can arbitrarily freeze your funds for 6 months whenever they feel like it.
I've recently moved to the US, and I wanted to get myself a Spitify account (hah). I had to wait for SSN for a few weeks, so no bank account yet - my only option was a prepaid Visa card. Bought one at QFC, used it with PayPal (a fresh account, as my old one is tied to another country) - and found it blocked the next day. PayPal had asked for an ID and address confirmation.
I had my passport, but no utility bill (I was still using Airbnb, just looking for a long-term place to live). Asked support if there's anything I can do - and got nothing useful besides "we need a driver license or utility bill", even though I specifically asked what else could I provide if I don't have either of those (I had a mailing address from a forwarding company). Account was unusable, all I could do with it was logging in :)
Then I've rented apartments and tried to send them a lease contract (with my full name and address) and it was rejected. Not an utility bill, right. Asked support about it, got no reply at all.
Waited for a month, got electricity bill, and only then my account was unlocked.
So, anything unusual - and even if you don't receive any money, you account could be blocked.
...but the core problem is this argument is in reverse anyway: if I get banned from Bank of America somehow I don't lose access to the concept of a card that lets me pay for my Verizon account, and in the worst case scenario I can send them a check. I have had serious issues with Verizon paying for my account before (they both claimed I was behind on payments but would not accept money without a PIN number, which I could only get by verifying my address using a post card that would take forever), but it wasn't a catch-22 scenario where I lose my phone number as there is somehow literally no way to pay for their service again.