PayPal is the first corporation to realize that cryptocurrency will be a big thing in the future, especially in the finance sector. BitGo is not a very large sized firm, and I suspect they are going after it as a test run. If the acquisition is successful, then they may acquire larger crypto businesses. And one more thing. I won't be surprised if PayPal acquires one or two major cryptocurrency exchanges in the distant future, and merge them with their main platform.
There were quite a large number of corporations who realized it years ago. Overstock, Newegg, Coinbase, Grayscale among many others. Acquisitions are important for some of the smaller companies to get funding to grow which should help the entire ecosystem.
And DooMAD - i think you are right about the "PayPal froze my account" stuff...no doubt that will happen.
I don't see why people would use PayPal as it is now to purchase bitcoin since it is locked into PayPal. Hopefully they correct that issue eventually, but if they do, that is when I'd worry about the "frozen account" issue if someone sends it to an unapproved web site directly from PayPal. e.g. gambling or some site that someone doesn't allow.