What about you implement such a service?
In theory I could, but I would need to program a system that allows people to lodge transfers online, integrates with the BitCoin system, links in somehow to PayPal's API (do they even have one for this sort of thing?), and then also implement the selling of BitCoins system so I didn't end up with a huge stack of BitCoins and no money. I've got a little PHP experience but this is way beyond my ability. Then there's the risk that BitCoins will decrease in value between my buying them and people buying them from me. Surely some of the existing BitCoin players would be better equipped to offer such a service?
Hardly! You try telling a business that it has to convert it's BitCoins into VISA cards and then can only use them for online purchases. How do you pay wages with a VISA card?? Bitcoin is a currency, not FlyBuy points!