Yeah there's also also a "real" punishment in the "real world" like jail time or something for some of these "failed businessman's" and beside who said you need a lot of intelligence to register for a program - these businessman's must be aware of that when they starting their businesses. One thing is for sure it's even easier for the average user to loose their funds investing online than in the real world...
All that you saying sounds very reasonable to me, TM should be the initial reason for all the TE sites issues with Paypal because they described themselves as a TE site.