It's an expensive document which is hard and slow to replace, and when Hetzner get hacked - and they like everyone will be, sooner or later - I would have to do that.
No problem for Hetzner, and it solves their authentication problem. Big problem for me.
Using a friend's paypal will get you banned for sure.
Why not just provide the passport if you want to use their service, jf that's their requirement.