Paxful is a poor replacement for LBC. I've never used them, but my understanding is their KYC requirements are even more invasive than those of LBC, and they will regularly lock and freeze accounts and coins while demanding even more KYC info. And as I mentioned above, if regulatory pressure is enough to shut down a centralized not-really-P2P platform like LBC, then it's enough to shut down a second centralized not-really-P2P platform like Paxful, which means you would be back at square one again looking for a new platform.

I don't see why people wouldn't just go for the best option out there (Bisq), which is immune to being regulated out of existence given that it is software which is run locally and not a centralized entity.