Paypal is actually better in many respects which is what a lot of people here miss. In general its quite good for buyer protection, whereas Bitcoin has no buyer protection and therefore a greater need of trust in its most intrinsic form of transaction.
Obviously I am a huge supporter of Bitcoin but more transaction tools are needed for its success.
Paypal is fine for buyers because of the buyer protection, but on the other hand, there are lots of limitations for its seller protection.
https://www.paypal.com/webapps/mpp/security/seller-protection