I do the same. Paypal for shopping, Bitcoin when possible.
If there list of merchants rises I will make sure I will start depositing to my bitcoin wallet, instead of my paypal wallet.
Yeah, Paypal has really good protection for the buyer when it comes to buying stuff, but when you're selling or trading, bitcoin is the best. Also when you're investing, bitcoin is the best as well.
So overall bitcoin wins, although paypal can be a convenient temporary payment method.