Saw that. In this case, that is NOT the case. The practice is standard. If anyone should be stood up to, it is the banking industry itself, which set this standard, not PayPal.
PayPal's TOS of pretty much bullet proof, I don't think there is anyway to actually hold them responsible for their actions and mistakes.
And the vast majority of them, probably 59,999,000 to 89,999,000 are happy and never bitch. I have had issues with paypal, but over time, they have done damn good by me. What I always tell these paypal sucks crybabies, either move to something else, or shut up with the whining.