This is basically the beginning of the end for Paypal, and this move serves as their confession that they know it too
This may be very well the end of PayPal and also of the banks. Once they accept Bitcoin they'll also prove that they are afraid of it. But this fear should
be properly understood by individuals and not to go straight to banks and PayPal. Instead, understand to avoid them!
Also, incase you missed, check my previous
post, which is an answer to the alternative IDs idea you suggested.