For reliability and best performance? of course paypal is better, for low fees and being decentralized? of course Bitcoin is better. also paypal doesn't print money they just process and transfer it but Bitcoin doing everything on it's own.
Bitcoin lower fees than PayPal? It depends on how you use PayPal.
If you look at what the majority of the people are using PayPal for, then it is online shopping and transacting from and to family, relatives, and the list goes on.
All above mentioned requires no fee at all, and thus gives PayPal the main benefit when it comes to fees.
Right now the recommended fee sits between 0.0003-0.0004BTC. In fiat value that's at least $0.36 per transaction. That's quite a difference, isn't it?