i think it is impossible that google will use online money transfer for sending payments especially paypal. violation of TOS is the main reason.
this is such a stupid topic. google adsense won't ever use that bs to make everything easy for you. it's all about them making money.
LOL, Now I know why my bank hold my money for 21 days even after the foreign currency check is cleared.
Google likes to be in total control of its transactions. It would never allow third party to come inbetween them and their customers. Besides they delay the payment to earn a lot of interest. They give you ample time to violate TOS and then prevent the money transfer.
First of all , Paypal doesn't have a clean image (specially for merchants), and has plenty of problems . Second , as many have noted - Paypal , like almost any online service provider in the world , is in direct competition with Google on a certain level (and so is Ebay ,Paypal's parent company vs Google Base ... ) . At some point Google will certainly come out flailing and slinging with a more massive financial platform, that's for sure ....