I've never had a problem with Paypal - maybe just luck on my part. I like that I can shop online using my paypal account like a virtual debit card - or use my real paypal debit card. I like that I can transfer money easily to a friend or family member for various reasons.
As for the fees - well it's a service - if you don't agree with the fees you just don't use it, kwim? It's a business and their goal is to make money. Just my opinion!