I don't see how some people here have kept so much in their paypal. I was nervous as hell having $1000 in there once and transferred it out as soon as I received the payment. PP loves to control the money, freeze accounts, and there are many instances of sellers being absolved of wrongdoing, having accounts unfrozen, but still have to fight to get their money back.
PP loves to control the money there and when they take it, there is little one can do and they know it. The whole PP debit card thing is just them trying to create incentive for clients to keep their money in PP so that they always have the option of stealing it. And that's what they do a lot of times... they downright jack people for their money like a Ugandan bank, most of the time for trivial causes, sometimes for no reason at all.
Truth be told it's convenient to use them to buy and sell things, but not ever hold any money. But any very large transactions and we have to find another way to work out payment because PP is just too risky to use.