So I buy a product with bitcoin, and the seller never sends it or they send a fake version, how exactly does trusting the longest chain get the money back in my wallet?
This feature is almost the entire value proposition of PayPal.
That's not a dispute resolution with blockchain as it sounds like "it" is not on the blockchain. It would be treated as the same as cash. You would have to go and ask for a refund or sue them.
I agree in principle, but I stopped using paypal specifically because they stole my money on unfounded accusations and have done the same to tons of other people.
This feature is almost the entire value proposition of PayPal.