So this is the price users have to pay for using their "regulated" exchange/wallet? Welcome to the "paypal" of bitcoin

CoinBase deserves credit for helping Bitcoin grow stronger in the "real-world". They have the right to decide how to deal with regulations and users have the right to use them or look for other options.
If we apply your logic in the controversy of Net Neutrality, following comes out...
Telecom companies (Read At&T and Verizon for USA) have done a lot for spreading the internet. They have the right to decide which site to load first and which to load slow. Users have the right to use them or look for other options.