I have a trust in Amazon that goes well beyond the rational. If something isn't for sale on Amazon, I probably won't buy it. If I purchase with Amazon, it'll show up, it'll work, and if I want to return it, it'll just happen. I've had one or two issues with their Indian customer service via chat, but any real issues where I ended up getting on a phone, it got solved straight away.
I deeply and truly believe Amazon is on my side, where I believe Paypal is actively out to screw me.
I actively avoid Paypal for anything other than Ebay, and that's only because Ebay won't let anyone else but their own payment system on the site. I'm usually quite happy to use Google's payment system and I'll be just as happy to use Amazon's.
Your experience mirrors mine exactly, and I think that is why the customer loyalty for Amazon goes well beyond simply cheaper prices. It's the whole package that makes the company awesome.
I deeply and truly believe Amazon is on my side, where I believe Paypal is actively out to screw me.
I will use this service wherever I find it.