I'm a passionate Paypal hater. My desire to see them fail is even greater than my desire to be rich.
So I'm not supportive. I hope they perish like the dinosaurs 60+ million years ago.
PayPal will introduce the masses to Bitcoin. Then, when Bitcoin becomes easy enough for the average Joe to use, those people will abandon PayPal for pure Bitcoin.
Then PayPal will wither away, and you will get your wish.
More like PayPal will introduce PayCoin, their own brand on top of the Bitcoin system. After they leverage the entire Bitcoin network for free, they will charge both sellers and buyers fees to send PayCoins through it's "secure" network. Since PayPal is already ubiquitous in NA and is required for sites like eBay, everyone will adopt PayCoin and not even know what a "Bitcoin" is. Then they will freeze your PayCoin balance any time you make a transaction they consider "too large". They will reverse payments to sellers because the item "didn't work" or "never arrived" even though you have delivery confirmation. You won't be allowed to use PayCoins to purchase any digital goods either, of course.
Sounds amazing.