Seriously i think the days of banning crypto are behind us, with this new development of PayPal providing crypto service to it's customers starting with USA customers, i want to believe the negative perception about crpto in general is reducing otherwise while will a company like PayPal decide to support crypto, now they have realize that the use of digital currency is inevitable, the more government device a means to eradicate crypto the more the awareness grow,
it really doesn't matter what the government do or say, the fact remains crypto is here and not going anywhere, it is time they start to have a re-think, make plans towards crypto acceptance, it is said "if you cant beat the you join them" government are losing control.
You are in vain to rejoice at this PayPal announcement, because this announcement does not carry anything useful for the crypto. You read their announcement in general, they offer centralized storage of cryptocurrency, without providing private keys, and this is contrary to the principles of cryptocurrency. They are also going to provide educational materials for those who are newbie to cryptocurrency. And what happens: PayPal will breed a huge number of misguided newbies who will think that centralized storage of cryptocurrencies is okay. This not normal. So PayPal at this stage cannot bring any benefit to Bitcoin and its community, in principle, benefit only to Bitcoin holders, because the price is flying up against the background of this announcement.
PayPal did not give a damn about the rule for any crypto user: Not your keys, not your coins and is developing another centralized trash heap in which your funds can be blocked or censored. They have such a reputation, they often did this in the field of traditional payments.
Perhaps you are right in some ways but this type of thinking is only for those who have deep knowledge about crypto and the importance of having your personal wallet, even though in practice this is not mostly applicable to all the users in crypto (their are millions of users who still prefer to keep their crypto asset in exchange rather than in their personal wallet and this is after knowing about all the risk involve) in the case of PayPal, this is mostly relating to the average joe who have less knowledge of all this things you said and still want to be in crypto regardless,
And if your perception about "not your key, not your money is that strong" then i guess you have no funds with any financial institution, because as far as i know, financial institution are directly in control of people's funds and billions of people all over the world are still trusting them with their funds, we can not deny the fact that bank still plays a vital role in our spending, if not all our cards are attached to a bank,
PayPal may have their own way of providing this service but bottom line is they recognize crypto and are willing to provide the service to people, and since they are willing to educate people in this regard then i don't think they will be misguided after all.