I have spoken to PayPal and they have said they cannot resend the payment.
Not only am i shocked by steams actions, I am pretty shocked by some of your responses, it really does show the height of your horses.
Then you need to talk to Steam support and explain, as Paypal cannot resend the payment for some reason, allow steam to let you access your account where-by you can purchase a game for the same price using other means, and to ensure you don't use Paypal in the future to avoid such issues. Remind them you are a long standing customer and have well over 100 games, none of which have had any problems before and that you wish to rectify the issue and not lose your account.
Also I don't think Steam are being unreasonable, it's their protocol, if a charge back happens, your account is blocked. They have only suspended you and not banned you, so you can easily get it back again, you just need to explain to them a few times until you stop getting generic responses and get a real person to talk to you. The first reply you receive is always a generic copy and paste, which can last for a while, but keep sending further e-mails which will get a person to actually read them properly and they will allow you to get your account back.