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.
This. While regulation isn't something most of us like, the fact is that it's not something we're going to escape. Coinbase is doing what they need to survive long-term, rather than "punish" the government by ignoring them, only to crash and burn (along with prison time and complete loss of customer funds). I'd much rather be able to use them and know it's safe than to use them and wonder when the government's going to shut it down and take all my coins.