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When you saw the clicks going up, you should have emailed Google and told them about it. Someone might have been deliberately clicking your ads to deliberately shut down your account, which isn't your fault, but it's still your responsibility to report all suspicious activity to Google. If they find it themselves, they assume that it was you comitting the fraud, and shut down your account.
I agree with you that Google's policy of shutting down accounts (and refusing to re-instate them) is somewhat flawed, but to call them a scam is a bit much. They are trying to take drastic steps to protect their advertisers, and prevent click fraud. If they didn't do this, advertisers would probably be calling them a "scam".
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