Coinbase and Bitpay (possibly others?) are services which enable merchants to accept Bitcoin for transactions with a fixed fiat currency value. (e.g., a $20 USD item)
Yes. This is is a great service because as a merchant, handling bitcoins can be really complicated tax-wise (depending on the country) here you have to take into account value when you got em and calculate profit/loss when you sell em then declare as you would do with stocks. Since value is always changing that's a lot of complication for not so significant sales volume (hopefully this will increase). When you get paid in fiat currency you just add it to your sales like a credit card sale. However I still don't see significant sales from btc users, seems like many people keep em waiting for value to increase.