Altcoins have lower overall transaction fees because their network doesn't experience much usage (if any at all). It's not that long ago where people were referring to Ethereum as being the Bitcoin killer, but yet it failed miserably in that aspect. Due to an insane amount of usage, its fees have shot up significantly, and its network experienced various major difficulties. No chance.

What is that for logic? It all depends on how and in what scenario you use one of these two options. PayPal functions very well as platform for people to transact with each other, buy stuff, etc. Bitcoin severely lacks in that aspect. Bitcoin is better in other aspects, but not in the aspects PayPal enjoys most of its usage.