All my transactions with paypal were completed, i just lost some money using them because my account werent verified and i couldnt moove the money from it into payza or any other account. But paypal is legit companie if you have been scammed with their policy that protectes the buyer, its another question, but they are in the market and top payment processor using fiat.
Of course you can not use the facility in full if your account has not been verified. Therefore if you want to get ease in using paypal you have to do verification
There is nothing wrong to have a verification about the person identity, because it's been functioning as a cross border transaction provider with tieup with several corporate firms around the world. Its an legalized service provider, which can never go scamming the users. It needs reputation to be successful and long running.