Paypal loves bitcoin because they hate CC companies, not necessarily because they think it's cool.
I get it. Paypal hates that credit card companies, by law, have to give consumers rights that PayPal doesn't. Bitcoin makes it easier for Paypal to screw you.
Why does anyone need paypal for anything in a bitcoin transaction? Feedback? Transaction history logs? Why would anyone agree to pay paypal a fee when bitcoin is involved?