Personally, I've done a lot of dev work for Bitcoin for foreign nationals. It gets real annoying real fast to deal with PayPal or traditional international money transfer systems when you're talking contract work levels of money for a small company (too much for shitty remittance services, too little to make the overhead of more complicated bank-managed mechanisms worth it).

And yes, I do pay taxes on my Bitcoin payments. It's somewhat annoying to keep track of everything, but my accountant mostly takes care of it for me. I probably end up losing ~2% to overhead (very little of which is due to Bitcoin itself), which is unfortunate but comparable to even the cheapest traditional services.