The verification thing has absolutely nothing to do with security and has everything to do with $$$. Sellers and vendors use PayPal so they don't have to set up merchant accounts with credit card companies for infrequent, one-time, or seasonal purchases. Eseentially, they just need a bank account for PayPal to deposit their funds (less the fees that the credit card company charges them and a little more for PayPal's "troubles"). Because PayPal deals in volume, they can negotiate lower rates than the individual vendors could. This is how they do business. I know this because I work for a similar company. By forcing "verification", they will either withdraw from your checking/savings or have you use a co-branded credit card, in which case they will get to keep more of the fee charged to the vendor/seller. (BTW, therein lies the difference in our companies, we don't do direct withdrawals or have our own credit card), PayPal is not a friend of the buyer. Really, do you care if you use your credit card through PayPal or directly through the seller (assuming secure server, etc.)?
While there are tricks, such as "losing your card", those are a pain, especially if you do have some auto-charges on your account (I'd have to contact numerous utilities, etc. to have the card # changed. The best answer is to get your vendors to revolt.
Update - the vendor with whom I have primarily used PayPal (or at least is most responsbile for me getting near my limit) is switching to Google Checkout soon. Encourage your vendors to do the same.
