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.
nope few days ago the owner of paypal actually interested in bitcoin, and you know Coinbase and paypal cooperation together, and I think indirectly linked bitcoin and paypal cooperation. so I think the competitors could work together for the better and this will certainly provide benefits to both parties