There are so many options for cashing out of bitcoins ... why PayPal?
If you are in the U.S., many exchanges offer withdrawal to your bank account with ACH. (just like how withdrawing from PayPal to a linked bank account works).
If you are in the SEPA zone in the E.U, there are multiple exchanges that offer the ability for you to withdraw to your bank account as a SEPA transfer
For Canada, same thing -- easy bank transfer.
For those without a bank account, perhaps a family member or trusted friend would accept a bank transfer as a favor to you. And then have it sent via PayPal from there, if you still really want PayPal after that.
There are many options:
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http://en.bitcoin.it/wiki/Selling_bitcoins