PayPal offers ultimate security for the buyer side, which is a horrible feature affecting sellers. PayPal has become a scam haven with how easily it is to charge back on people selling stuff, which is pissing them off understandably.
Yes, this enables scams in variety of ways. I have lost money on ebay buyers trough Paypal which make claims and win automatically. Also recently i had a situation when PayPal just reversed 3 different payments to buyers without any reason! ( 3 countries and 3 different dates) They were shipped and tracking was added.
Bitcoin will allow sellers to finally enjoy an ultimate form of security and protection of their cash flow due to how transactions become final once confirmed. One way or another, it would be cool to see PayPal merge with Bitcoin.
In this scenario buyers are not protected at all thus it wont work . Escrow is needed in some way.