I have closed my account with paypal, but not without considerable difficulty. i did get hold of them on the phone, and after considerable attempts, did finally close the account..as for the reasons, mostly the difficulty in contacting them and getting simple answers to questions..
Beware of PayPal
I made a payment via PayPal and just noticed that they took the money out of my checking account instead of my credit card. They made this change without notifying me! Worst thing is that there's absolutely no way to contact them. They don't respond to my emails and they have no phone number to call! This is horrible!