I keep some of my money there, because of the great interest rate and convenience when I want to buy something on eBay. Most of our accounts aren't insured..that's nothing new. Paypal has changed a lot over the years, and the complaints are no where what they once were. Yes, if you suddenly have $10,000 in an account that usually has $100, they will ask you to fax or send a copy of your drivers license..that's for your safety as well as theirs. They seldom put holds on for any other reason nowadays.
As for emptying your account so Paypal can't do charge backs..that means nothing. You agreed to go by Paypal's rule when you signed up, and one of those is that they have the right to do a chargeback. If you have no money, they will wait until you do, to take it, and if you never have it, they will put you through a collection agency. So, sooner or later, they'll catch up with you.
I've been with Paypal since the begining, and so far not a problem. I feel I have made a lot more money on eBay because I take it, and I know it's a lot cheaper than most merchant accounts.