Banks can and do freeze merchant accounts for the same reasons and same amount of time as PayPal, and you can complain to the same robotic call tree if you don't like it. PayPal's not unique in that at all, most consumers just have no exposure to this as they never operate a business and have to get a merchant account to accept credit cards.
There does seem to be a shortage of horror stories with PayPal compared to how fiercely they're hated by some like yourself. I read a handful a year at most. For 230 million accounts, that's less complaints than you'd expect as a baseline regardless of the company's service record; every business gets their share. Certainly less than I hear about cable and phone companies, big retail chains, etc.
There does seem to be a shortage of horror stories with PayPal compared to how fiercely they're hated by some like yourself. I read a handful a year at most. For 230 million accounts, that's less complaints than you'd expect as a baseline regardless of the company's service record; every business gets their share. Certainly less than I hear about cable and phone companies, big retail chains, etc.