To me, he's talking about his lack of control, that he is not the dominant one in the relationship. The woman he's singing about is playing him, and skillfully at that... and he loves it and hates at the same time. "cause nothing is good enough" (a common complaint of Simon's...) - it's not really real but it feels good so why stop? "Where do you get off on manipulating" - double entendre, maybe? How to stop it and what right does she have? Interesting about the issue of who is dominance. He recognizes his surrender and that's as much a part of the "thrill" as the intrigue she provides for him...
To me, he's talking about his lack of control, that he is not the dominant one in the relationship. The woman he's singing about is playing him, and skillfully at that... and he loves it and hates at the same time. "cause nothing is good enough" (a common complaint of Simon's...) - it's not really real but it feels good so why stop? "Where do you get off on manipulating" - double entendre, maybe? How to stop it and what right does she have? Interesting about the issue of who is dominance. He recognizes his surrender and that's as much a part of the "thrill" as the intrigue she provides for him...
Anyway that's my take.