For low transactions maybe, but as soon as you want to do anything more with your Paypal account they will ask for the same kind of papers. I find nothing strange about that.
You said it yourself - for low transactions. When people donate/do transactions around the web they wont spend probably more than $100 in one go. If any bitcoin service would be worried about scam they would implement same security measures - lets say limit of $100 per transaction or total of $1K per year before they ask for papers. Easy and saves them a lot of money on processing applications as well.
