I would have to pick Paypal over bitcoin for now. Because paying with bitcoin is not everywhere available as payment.
Unless you exchange and pay with that money, you will be paying indirectly with bitcoin money.
I would also pick Paypal because the fact is that Paypal is just more accepted worldwide so you can buy more stuf with Paypal then with Bitcoin. I think that this maybe is going to change in the future.
Paypal's buyer protection makes it better for consumers, but less good for companies who are victim to scammers and paypal high fees.
With bitcoin it is the exact opposite. So depending your status you may choose one above they other.
Guys, somehow everyone miss the point, I guess. You can't compare apples to oranges at all. Bitcoin is a currency. Paypal is a payment management and customer protection system. Paypal is not a currency, so it's not a competitor to Bitcoin. If Paypal wants it will start accepting Bitcoin in their system like you can use the other national currencies in their system (but they won't include Bitcoin).
Paypal's advantage is the buyer's protection system. It has saved my money several times when I was a buyer and bought something from a scammer.
Bitcoin doesn't have a similar _and_ simple buyer's protection system yet. It really needs to have it as soon as possible, and that will be the moment when most of the buyers who use Paypal (just because of the protection) will change their mind and start using Bitcoin.
Sellers can use bitcoin now without any problem, they doesn't need protection if they sell for Bitcoin.
Because I see the payments can be done pretty easily and instant with bitcoin rather using paypal ! 
