If paypal accepting bitcoin, it will be a good news for both paypal and bitcoins. The price of bitcoin will increase for sure and many people will start using bitcoins.
it will not happen as paypal is seeing bitcoin as a more than dangerous rival. if ebay, the mother conpany of paypal lists bitcoin at their market platform as a payment option, then it will surely gain ground at the cost of paypal. they will not allow this to happen.