The linked article strikes me as pretty misguided. Here's the issue: PayPal's goal is to profit by providing a mechanism for different parties to pay each other

The linked article strikes me as pretty misguided. Here's the issue: PayPal's goal is to profit by providing a mechanism for different parties to pay each other. Its goal is not to make a profit by acting as a bank. There are various upsides to both PayPal and their customers if PayPal acts "bankish" in some ways, but that is not their purpose. PayPal is not "dodging" regulations by not acting as a bank anymore than I am; neither of us are banks.