I opened a ticket on the Even Balance website the same date this topic was posted. There have been 15 exchanges of communication but I am not sure they have understood my explanations of the problem. However, I found a workaround and began again to be able to play on PB enabled BF4 servers.
The pbsetup crash is due to not being able to connect to the servers from which updates are retrieved from. Instead of giving a helpful error message, the program seems content to just crash.
I installed pbsetup on a different computer (the third in a bunch—the first and second alternatives encounted the same crash, even though one was XP and I bypassed any router obstruction by using a different source for internet). I updated the program, added the games, closed it and transferred all the files pbsetup made into the correct locations on the game computer. (The locations are evident from where they are made. There are some that exist in the same folder as the pbsetup executable and others which go in the BF4 'pb' directory—if one doesn't exist, make it in the directory where bf4.exe is.)
The pbsvc error still happens but it turns out to be of no consequence.
Whenever a Punkbuster update comes out I will need to repeat the process because the crash still happens on the game computer. I can see the UI because it doesn't do the initial update, but clicking Update Punkbuster crashes the program. I hope this is of some use.