FWIW ...
I usually take those sites, like paypalsucks.com, with a grain of salt. Why? Cuz I'd be willing to bet a chunk of change that 95% of those posters actually did violate something in PayPal's TOS (Terms of Service).
They ALL say they "never" did anything wrong. Most people in prison STILL maintain their innocence!
But PayPal does have some customer service issues that really need to be addressed. I had issues back when they first started (before eBay bought them out) but things have gotten alot better.
Another thing that many still do not realize is that the credit card people, like Visa & Mastercard, do set rules for minimum fraud standards that ANY payment processor/merchant account HAS to accept and then pass on to their customers. As Robert mentioned, merchant accounts usually side with customer unless the seller can provide solid proof. And that is usually with tangible items NOT digital downloads.
BUT ... now I mainly use PayPal just to receive my affiliate payments for products and services that I promote. But I also do move monies from my PP account almost daily.
They're a BIG pain at times but there is nothing else close to what they can do outside of regular merchant accounts. They're big .... they're popular and millions prefer to pay for stuff online using PayPal.
Just gonna have to grin and bear it till there is some REAL competition for PayPal.
Rick Wilson aka CorpRebel