OK, let me make my own biases clear to start with: I've never PAF'd, but on the occasions where I've ran into other cachers, I've used the information they have supplied me. I have been the recipent of a PAF call, and have not witheld information.
In 1952, Tenzig Norgay participated in a Swiss expedition to climb Mt. Everest which was nearly successful. The next year, Norgay and Sir Edmund Hillary succeeded in climbing Mt. Everest for the first time. They not only used information supplied by the Swiss team, but used Norgay's experience with them, and even some equipment they had abandoned. Was the first successful climb of Everest cheapened by using information and even equipment of those that had gone before?
One of the appealing things about Geocaching is it's free form. The rules are few and basic, so it's up to the individual cacher to decide his own style for finding the cache. If the cacher is comfortable with using PAF, the hider should accept that, even if he doesn't like it.
The only alternative is to make a long list of rules that I know I don't want, and will only serve to drive most cachers out of the game. Maybe some would like more rules, and have Geocaching more structured. If so, who will set the rules? Will variations in regional styles be taken into consideration? Who will enforce the rules? If it's a governing body, how will it be paid for? Are we willing to accept the inevitable delays in getting caches posted that will go along with having a governing body? Personally, I know my answers to these questions. If I wanted something rigid, I'd have taken up figure skating. And I don't have the legs for that.