The reason I believe why PayPal isn’t mostly considered as an option, or gained a not so great reputation is most likely due to a lot factors. There the account freezing, yeah PayPal can easily freeze your account over little issues that you guys could’ve just easily resolved, and even when you try to contact them for resolution, their customer support response is just awful which is a another red flag. There’s also the issue of fee dispute, account limitations, policy changes and a lot of other reasons/issues.
You wont blame Paypal from prioritizing security to build trust for legit users. The reason why Paypal will restrict your account is when you undergo fraudulent transaction or you lie about your locality. I have been using Paypal for years now and i have not been restricted from anything because i keep to their policies. Paypal has been very useful to me because i can use it in everywhere i travel to. Before Payapal will restrict your account they will definitely inform you and then give you a warning ahead of time.