Not considered as a scam attempt. Just people are worried who they accept Paypal from, it is a known reversible payment method, therefore unsecure for sellers. I would suggest only accepting or using people from trusted or if trusted. Even if amount are infinite.
Agree with you friend PayPal is safe online payment system. I have used it from past years without facing any type of problem. Yes I think they provide special protection against fraud and if they found any suspicions then they want proper proof but mostly people treat them scam because PayPal won't allow them to do illegal activities.
It is true for most cases.But PayPal have too much restrictions and the verification processes are really headache for some ppl. But I can say if you follow their rules, you won't have any problem. They have very good service and custmer support.
The big problem with PayPal in connection with Bitcoin is the following: Not PayPal itself is the problem, but the danger exists that it can be used by scammers. Bitcoin transactions can not be undone, but PayPal payments. If you accept PayPal for the exchange of Bitcoins, you must ensure that it is not a hacked PayPal account, that you deal with or that it is not an account of a scammer, whose bank account doesn't cover the purchasing amount.