I don't think any reasonable person has a problem with PayPal deciding to freeze funds in order to ensure that they make a profit. The problem is that, once they have done so, it requires Moses and ten Biblical plagues in order for them to let your money go.
I don't have a problem with PayPal putting a temporary hold (delay) on new funds coming into an account (as long as it's clear what the guidelines are for such a policy), but what I do have a problem with is PayPal freezing an entire account, including funds that are more than a year old. Which PayPal absolutely does in some circumstances.
5-year ex-paypal customer (and hated being one the whole time). 6-month stripe customer (and happy every minute of it so far)
That's especially true for PayPal now. Before merchants didn't have much choice. If PayPal continues to be seen as difficult and risky, the better-qualified merchants will be the first to shift to other services. That will leave PayPal with a much more risky customer base than they have now.