Nope Google doesn't pay via PayPal for sure they only accept cheque for bank deposit and western union. nothing else
they do not pay in paypal.But i think they can bring something payoneer or just they can use googlecheckout for this.
No google adsense is not paying by paypal they are paying using either check , bank transfer or WU in some countries
Google will never pay by PayPal because PayPal service is concurent with Google Checkout. Maybe will pay by PayPal only if Google will buy PayPal (as he does with Youtube)
It is really unfortunate that adsense do not pay by PAYPAL. I do not know why adsense do not offer the most used payment mode in the world.