When I opened my PayPal account a few years ago, I had to provide all of that information, as well as allowing PayPal to send a $0.01 transaction before they made my account “certified.”
eBay and PayPal offer buyer protection, so I’m sure they want positive buyer identification first so minimize fraud.
Conservatives should put the blame where it belongs - on lawmakers and criminals. "Greed", I'm sorry to say, is a liberal, non-free market word. If Paypal starts to charge too much over what the buyer demands, then someone else will pick up where they lose out - it's the capitalist way.