I went to the hearing yesterday. No decision was made at that time. The judge took it under submission. I have no idea if I will win or not. I do think the judge believed everything I said - but he complained it was a complex case for small claims court.
But - this is win/win for me because it will actually be harder on paypal if they lose. PayPal asserted policies in court that they can terminate anyone for any reason whatsoever. And that's going to bite them someday. Winning this case will cost PayPal more money than if they lose it.