Paypal should be avoided for any website that generates alot of revenues. Whenever you break the 200k barrier, they will freeze everything ask for 10 000 papers, put a hold on funds with a rolling reserve. It's all a question of risk for them . However when you have to pay providers etc . and all your money is holded in Paypal you are risking bankruptcy.

Paypal is good for the little transfers, 1k and under, thats all.

Anyone making serious business need a real merchant account.