Hi Christopher and welcome to the forum
In regards to Alibaba, the general rule when dealing with mainland China is to stay well clear of branded products. No matter what the supplier will tell, you can't et genuine branded products at wholesale prices or even dropship prices from these suppliers and that includes those on Albaba.
Your second point is correct and you have clearly idnetified a problem if using a new PayPal account for dropshipping..You really need to have some free cashflow to get the ball rolling and to carry you past the account holding period with PayPal. If you don't have great cashflow, then the easist thing to do is just sell something cheap, pay for that up front and then serve your account suspension before getting more serious.
That however can also have the effect of raising ared flag with PayPal and can still cause them concerns, So I would always suggest speaking with them about what your plans are and who your suppliers are. They're always happy to listen to these things and it can save you a lot of drama over from just throwing the dice and hoping for the best with them.
Can you earn 60/70K, well as you said, you do see it put about that is possible and that's usually from someone trying to sell you a book on online selling secrets (which of course is a waste of money) Is it really possiple, the short answer is actually yes, but it's never as simple as some will have you believe.
You can forget dropshipping straight away, put that thought out of your head. Anyone telling you they can earn that from DS is full of %$%#%^^^**&*&. To be earning that sort of income you would need to know your market inside out, be on top of all the market trends that effected your market and have a massive cashflow or at least credit line behiend you to enable you to purchase in the volume size required to get the best possible price available on all your products.
Outside of that, just the logistics of running a business that size would mean you would have no chance of doing it on your own.
So is it possible, yes, is it likely .. even with a truck load of hard work, no it's not.