I called Paypal today and somebody answered. I spoke with a customer service agent who was helpful and seemed genuinely apologetic for the flaming hoops I'd jumped through. Without me doing much in the way of complaining he cleared up the limitations on my account. He had seen all that I had done and took care of me. Congrats to him. Ryan, if you happen to hear of this, I'll buy you a frosty beverage of your choosing the next time I see you.
Now it's not all sunshine and roses. Why didn't any of the emails I'd received from Paypal indicate that I could contact them via phone to resolve the issue? I could have cleared this up weeks ago. Hopefully Paypal is an organization interested in improving customer service and constantly evolving their business.