Ebay buying and selling Kabash

Ebay started as a venue for the average Joe to sell via the internet, where buyers shopped in competition via bidding. Then, it added Fixed price and Best offers, and Ads to its cache. Slowly the format and style changed, big businesses moved in to sell.
The Average Joe seller made Ebay the giant it is today, by offering items people wanted, in a fun and relaxed place to shop. These sellers were/are for the most part hardworking and honest.
Antiques and Collectibles such as Textiles and Art Glass were one of the mainstays that kept Ebay going...Now, ebay looks like its not interested in keeping these people that offered these lovely items with Ebay.
Some analysts are saying Ebay is moving to the 'Big store' format, and weeding out the little guys (who kept Ebay going), by implementing outrageous fee structures, mandating payment & shipping policies, & ruining the envrionment Ebay was revered for in the past.
I have seen so many posts online, showing these average Joe souls are afloat in the internet sea, looking for a stable new platform to bid and buy, list and sell. Sure, some have stayed at Ebay out of pure desperation. But the newest way for Ebay to crush the small to midsize seller just might work.

Ebay and Paypal have implemented agressively a new policy whereby sellers without a near to perfect seller rating, less than 100 feedback, or non power seller status, are having incoming payments by buyers blocked from deposit for 21 days into Paypal. How do these sellers stay alive then, if Paypal and Ebay are keeping those funds tied up (and paypal gains interest off those held funds). How do sellers ship auction items, pay seller fee's, trust the buyer to leave quick feedback? The answer is a sad one for Sellers and Ebay; I do not think they will be able to continue in the current Ebay environment. What do you think? Are these new policies REALLY implemented to safeguard the free trade environment Ebay used to have? Or, are these simply tools Ebay and Paypal are using to force the little guy out?
My other questions are, how can Ebay conduct itself in such a way legally? How can Paypal legally be allowed to hold funds for an item bought, and force the seller to ship first? Are these actions not in direct contrast to what these companies were founded on?
I want to hear from the people online who have been watching this downfall, and get your input :)
My forecast is, ebay loses those sellers who also buy quite a bit, losses of revenue and customers are going to hit these companies hard, and the Ebay reputation is forever lost as 'the IT place' to shop....Everyone scrambles for a new good home....Where do these entrepeneurs go? Where do sell those hard to find items for a decent price, with traffic flow that encourages buyers to buy, and sellers to list? That is the biggest question for many. Holiday shopping is around the corner, I say for many, find those great little sites that offer those great items by those founding sellers of Ebay. Here are a few I would like your thoughts on :
Bonanzle.com
Etzy.com
ECrater.com
powersellersunite.com - stores only


I was a seller for 8 years on Ebay, and a buyer for more than that. However, after seeing the way Ebay and Paypal have been treating loyal sellers and buyers, I have said goodbye. I do have to say, it'll be interesting to see if either gets into legal difficulty with these latest policies.