Paypal has ripped me off money by freezing my account and not releasing the funds but accepting incoming payments. I am speaking to my best friend who is an experienced lawyer in New York about another class action lawsuit, and according to him, we can sue paypal again for the same violations as before, but only ones after 2002. Also, terrible damages apply as well, loss of income for the following month apply as well as breach of the new protocol violations from the 2002 lawsuit.
In order for Paypal to suffer, people should switch to paymate, moneybrokers.com or anything else. Ebay does not "own" paypal exactly. It does hold much of it's shares and has a specific contract with them, but cannot legally do anything about unfreezing your account or getting a refund from paypal claims. Of course, if you can get someone from ebay to contact paypal you may have better luck.
I will say this: paypal will eventually lose. American's love to sue and eventually it will come to an end. Especially since it's customer service sounds like a third world country.