I think that is pretty ignorant of PP on their part. All of the sales of BTC and BTC related hardware just bring in more revenue for them via fees and people will find other ways of purchasing them anyway. I wonder why they did that.
Competition. Paypal is one of the few games around for fairly easy international money moving. Bitcoin noses in on that market.
I'm just going to leave this here: http://www.ebay.com/itm/5-1-oz-copper-rounds-999-fine-live-free-die-barter-tokens-/261222158809
...and this: http://stores.ebay.com/fiat-is-dying
Moving pieces of metal internationally doesn't really count as "easy international money moving", nor is it anything that can be called rapid by modern standards, and therefore isn't in competition with payfoe.
I guess that makes me an idiot! Let's see if I can redeem myself: http://www.ebay.com/itm/RIPPLE-250-XRP-the-newest-type-of-digital-currency-with-great-potential-/141020909183?pt=LH_DefaultDomain_0&hash=item20d5804e7f
