I doubt it. In my experience (I've been through this many times, and never for an actual TOS violation), PayPal will always eventually find some reason to freeze your account. They usually refuse to even tell you the reason because it would reveal their "anti-fraud" system. I've always thought that excuse invites more fraud than it prevents, especially with all the horror stories about PayPal arbitrarily freezing accounts. If you get caught shoplifting, does the store refuse to show the video because it would reveal the location of one or more of their cameras (their "anti-theft" system)?

If PayPal starts accepting Bitcoin, I guarantee you'll have to add funds to your wallet on their server (just as you do with dollars/euros/etc now) before spending them through PayPal. That just means PayPal now has a way to freeze and/or steal your Bitcoins along with your government money.