From 7th May PayPal have lost my business, as has any business which uses paypal exclusively. This is a completely customer hostile stance and shows capitalism at its worst.
It may be greed and lack of sight from PayPal side, but capitalism tends to adjust itself.
Markets certainly don't always automatically fix itself. They require oversight and regulation, or else they tend to result in cartels and monopolies. The free market is great when it works well, but quite often it needs a bit of help.