I could see a potential benefit for people who want to get some coins without having to deal with exchanges.
I offer to mine any coin you like (GPU algo)
So the buyer gets to choose which coins you are going to mine, right? Can you cover the whole range of alts? Your GPUs could be subpar for some coins. However...
also the lack of know-how in how to get some coins.
One problem I see is that if they lack the knowledge how to get coins, they probably wouldn't know how to open a wallet.
...you pay me through paypal and I deposit the coins I mined to your wallet. This would be on a daily basis so we build trust gradually. I don't want you to pay me without being sure I'll give you the coins so it would be a daily payment to make sure we both are safe. This is risky for me because I don't know you,
Exactly. This will indeed be very risky for you if you are getting paid through paypal.