The test user needs to cancel the subscription at Paypal. I know that in other scripts and sites, if I subscribe to something and unsubscribe I also have to do it at Paypal in my account. 

Did you go in admin to the manage subscriptions and cancel it as well? Since subscriptions do stay in there even if a user is deleted. Always do that as well.

You can add a feature request for that  but I had already asked for the first one. I was told that it would then delete the past records and that's not good for admin record keeping of payments. I have free subscriptions and a lot of deleted members with subscriptions still there. I don't like it either. 

As for the recurring subscriptions - they still need to manually remove it from their paypal account subscription area as no script can log in as that paypal user to disable it. The script can be made to not bill someone. It depends on how this is set up. If it's recurring, then it's in the user's paypal account under that section of subscriptions. If it's just a cron that checks for subscriptions that need to be billed, and then the script bills on that date - then it could also not bill on that date for cancelled ones. 

If a member changes plans, it should already change their subscription plan. Is it not changing them to the other plan?

However, perhaps things can be improved some via a well thought out feature request.