I see this a lot in general online.
Paypal treating people like absolute crap and simply locking their funds for 'suspicious behaviour' and then just sitting on them for very long periods of time, gaining interest at the end-user's expense.
The trouble is, Paypal can get away with it because they're so embedded in the standard end-user's online way of life. Shopping on Amazon? Might as well use Paypal, it's quick and easy. Ordering Pizza? Hey, I can just use Paypal for this, too!
I don't see the issue resolving itself until a viable alternative starts to knock Paypal off its golden pedestal.