Paycoin removes several of the main strengths of a cryptocurrency. What's the point to try to introduce a "floor" - backed by their own supply of good ol' fiat USD? That's just counterintuitive. There is no need for a cryptocurrency backed by fiat (if you want it there's Ripple's IOU system which can be made to achieve same effect). Also, no need for another debit card, Xapo and several others do that.
And, if almost everyone wants to sell their Paycoins will GAW buy every one that is up for sale up to 100MUSD? I don't think so... I wouldn't, even if I was GAW/Josh and didn't understand currency.
I'm just curious as to why you think something is going to fail before it's even had a chance?
And that's a serious question... BTC does not behave the same way as fiat currency, too many other coins are pegged to BTC's performance, so maybe pegging to the USD might be a better way.