Oh - you are using your version now? Guess I had better delete mine then
As far as paragraphs - the only thing I can intelligently talk about without playing with PSP for a while since I don't use it much anymore - you have to add your line breaks manually where you want them by clicking in the text where you want it, then hitting ENTER. Some people will actually type their text in Typepad or Word then cutting and pasting.
What I like about the PSP text functions over PS is the ability to tightly control leading and kerning to work your text around shapes or for full justification. It takes some work and is all done manually, but you have more control than with PS.
Stroke - you can select your object, then expand the selection and fill with color - only thing wrong with this is the corners are rounded due to the expansion.
Clipping masks - unavailable in PSP - one great thing I discovered in PS. You have to select the object and "cut out" the shape in the layer desired.
Drag and drop is not used in PSP - but you can use Ctrl-C, Ctrl-L (not Ctrl-V), then move it into place... not quite as smooth as PS, but doable and pretty soon it's second nature. In fact, when I'm in PS I tend to open Levels menu by mistake a lot after using PSP
PSP has some great features that aren't available in PS, especially with quick photo fixes and text manipulation, but it does have shortfalls - what do you expect for less than $100
And I think it actually is easier to use than PSE, which is about the same price.