Interesting, thanks.
If you're just a consumer you have all sorts of protections under our (and dare I say the EU's) financial protection rules. But once you're a business, even a small business, you're by and large out there on your own. And there I would agree PayPal acts insensitively and arrogantly.
There was a case on the BBC recently where someone made a payment to a business and for unknown reasons tagged it as 'raffle'. PayPal's auto software decided the business was operating a gambling site (very much against their rules) and closed the account immediately.
There are other transaction platforms out there, if you're a business donot put your eggs in one basket - but sadly so many do