Of course I can’t see how this move would benefit anyone but PayPal.
I don’t see it as a big change in the possibility of having more people in the on-ramp given by PayPal.

The only change, actually I think is a big one, is on the corporate side of this.
PayPal allowing users to transact real digital tokens means their procedures on KYC/AML, accounting, regulatory are mature enough to allow them (PayPal) to deal with those topics with a relatively low risk.
This is yet another example of institutional adoption of Bitcoin.