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I think we need to forget about fiat.. There needs to be exchanges where people can trade things other than fiat into BTC :) I am thinking an exchange where people can trade magic the gathering cards with each other for bitcoin. Just kidding. But maybe WoW gold and items or something. Or any other game that millions of people play.
It's the convenience versus security tradeoff. PayPal can be very convenient. It's not secure -- with PayPal itself being the biggest risk factor. Zelle is much better, but is U.S. only (well, to clarify, ... it is for bank accounts in the U.S. only).
There really are few good alternatives for buying or selling bitcoin P2P. In-person Cash (also known as "Face-to-face"), cash deposited into your bank account (which few banks permit), postal money order, and prepaid gift cards. Other methods such as mobile money can work depending on the provider, and remittance services (i.e., remittance payment sent to the P2P seller) work as well but those both require identity verification / KYC.
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