Yeah. Despite the similarities between PayPal and Bitcoin for money transfers, they're different one from another. It's like comparing oranges with apples. But, rest assured that the more traction Bitcoin gets, the more attractive it will become for merchants and individuals to get ahold of its benefits.
Eventually, both Bitcoin and PayPal will co-exist, as they have their advantages and flaws. Whenever you need to get access to fiat currencies, there is PayPal, and whenever you want to grow your investment for the long term and achieve financial freedom, there is Bitcoin.
It is up to you to choose which of these payment processors suits your needs to help you maintain a steady financial life. Just my thoughts

If I would choose I would still be with bitcoin side.
The Paypal company is getting too strict with their rules and it looks like they are over reacting.
I dont know where they get those kind of updates but if it is also users that wants those rules then they can all stay there for themselves.
I know they are a company with a lot of connection with online shops but that should not be the reason to make it too strict with how to transact.