Does PayPal now offer automated monthly recurring billing? I couldn't find information on their site about it. I have a regular merchant account and I'm curious how many customers would prefer to use PayPal rather than regular credit card processing?

They do.. look for the FAQs on the topic "Subscriptions"

;)

Anyone accept PayPal from customers? Any figures on what percentage of sign-ups prefer using PayPal v/s standard credit card processing? I currently do not accept checks or money orders so I thought PayPal might be a good option since users can fund their PayPal accounts without a credit card.