Paypal is a veritable swamp of bitcoin scams, chargebacks, and various other refuse that nobody actually planning on coming out of a deal without missing limbs and a fresh psychological condition would consider. Piling your presumptive "we"s and "us"es on top of all that in tandem with the failure to explain what it is you're doing and how it's sustainable is like rimming an ipecac cocktail with rat poison.
It will only really be a problem if he tries to chargeback, which would get his account in trouble, and little help, since he is running such a business.
This is correct. It only become a problem if we start to chargeback ( which not even sure how that would work) but we wouldn't do this as we want to be the "exit" out of Bitcoin for people and would defeat the purpose of the Business. Like you said, we would get little help from Paypal if we went down this road and wouldn't do us any good.