Paypal will never help Bitcoin gain more widespread acceptance. Bitcoin is their competition and even if they publicly say they are considering using it in their system (which many gullible people believed and took at face value), it just won't happen.
Paypal has a near monopoly in their market and has monopolistic pricing and they are going to protect that however they need to. They sure aren't going to help Bitcoin, which could hurt them in the long run.
This.
Bitcoin is here to replace PayPal.
Then you don't understand what Paypal does very well.
Paypal is a layer on top of the fiat currencies of the world, to help people transfer those currencies to each other. Paypal is not a currency.
Bitcoin is just another type of currency, and if gets to the point where there's any kind of mass adoption of it, Paypal will certainly be happy to help people transfer bitcoin with fraud protection for consumers layered on top.