1: If people read the rules in MM and actually paid attention to them they wouldn't be suspended.
2: It's not a mod ego or power trip, it's the rules being applied as they are laid down, and have been laid down for the past few years (MM was short handed for a while).
3: Whilst suspensions for MM deals are forum wide (I believe it's the only way the forum will handle them), once the third strike is up the user gets a suspension and once that is ended they lose mm access but retain access to the rest of the forums.
4: In theory someone being suspended shouldn't automatically stop a deal being able to be completed - assuming both parties have paid attention to the recommendation to get exchange email addresses etc.
As for the rules themselves they came in part from necessity, and part from users themselves complaining about things.
YGM - it's a bump more often than not, most people are able to tell when they've got an email by looking at their email client (yes it might delay a deal by an hour...)
No bumps/Minimum time between bumps and price drops - people were bumping their threads every time they dropped of the first page of the MM, and when you've got even just 5 people doing it every hour or so it keeps forcing new threads off the first page (it's a vicious cycle, your thread drops off the first page so you bump it, causing a newer thread to drop off, causing that thread starter to bump his which pushes your thread off the front page again...).
No Trading - obvious reason.
Members market is probably the most consistently troublesome part of the forums in terms of problems and potential for problems, about 80% of which could probably be prevented if people read the rules/sticky and used common sense (before sending someone money via paypal/western union it's an idea to get at least a landline phone number).