It is likely that they will way less likely freeze the funds that are stored on the blockchain, as everyone will see it happening real time and the general public can also see how much there are frozen coins at any given time from the total circulation.
Paypal has only little problems freezing their regular USD accounts. Yes, people will complain online, but so what? Regular Joe still will assume that it is just some isolated cases and won't be happening to me. No one outside paypal knows how much freezing is happening, and likely inside paypal as well it is not well known information. Meanwhile, the more they freeze the more they have funds for their own bottom line, so incentives are not very well aligned.
I have a gut feeling that this might be "blockchain fixes it" moment.
> Do not ever leave money you care about in Paypal.
Yes, I agree. However paypal is big incumbetent player on the payment market and these products will likely be popular, so it makes a lot of sense to analyze them in detail.