I wonder when Paypal will actually integrate it into the wallet at paypal.com. They seem to be testing the waters in the ways that they are allowing it right now. They aren't making it too public, like if you were just to log into your paypal account, you wouldn't have the slightest idea that they support BTC.
Hopefully everything comes off smoothly in this integration so that they can start picking it up on a larger scale. This will fast track us to more mainstream adoption, which we all want.
I doubt this will happen. This would cause a huge security risk as all of a sudden there would be a much greater incentive to try to hack paypal then before as you could potentially steal the bitcoin held by them. It would also effectively take away a lot of the consumer protections that PP gives buyers who use PP (and use it because of the protections)