You can decry paypal's customer service, no doubt, but recognize that the root cause of these problems are all of the very real scammers who have abused the system and never make the news.
If you discover that you have processed a fraudulent transaction, undoing it is quite understandable, but keeping the money for yourself (as per the link) is a pretty shady solution.
Fraud is not so simple. Step 1 is identifying a potentially fraudulent transaction. Most financial institutions put the breaks on any funds transfer in that case until a further investigation has completed, rather than merely reversing the previous operation (indeed, that would lead to an even greater adverse impact on false positive cases and would aid the fraudsters as well).
If withdrawals from your bank account is frozen due to suspected (or actual) fraud, few people jump to the conclusion that the bank is out to snatch up their money. Why not extend paypal the same courtesy?
I addressed that. Do you not appreciate that when a bank freezes an account for fraud that it too is "keeping the money for itself"? Indeed, this is the appropriate course of action until a better determination of whether or not fraud is involved is made, whether you're Chase or PayPal.
Let me be more clear: what, precisely, makes you believe that when paypal freezes an account due to suspected fraud that it is more likely actually due to nefarious purposes on their part than when Chase or Bank of America or any other bank takes exactly the same actions for exactly the same reasons?
If you discover that you have processed a fraudulent transaction, undoing it is quite understandable, but keeping the money for yourself (as per the link) is a pretty shady solution.