I think it will because:
Bitcoin is faster
The fees are lower
You can always send how much you want
The Bitcoin community is growing very fast
1. Bitcoin transactions aren't faster than PayPal transactions.
2. If you send money from your PayPal balance to friends, relatives, etc, then there are no transaction costs involved.
3. PayPal is also seeing its user base grow in a quick fashion.
I also believe in Bitcoin and its future potential, but we have to remain realistic and keep focusing on facts rather than just saying something you don't know much about.