OK I have made some progress. I ran the checkout wizard again and de-selected the option for adding a shipping address. Now if you select PayPal as the payment option, there is no form just the button to pay by paypal. Great! Just what I wanted.
BUT if you select credit card as the option and remove the client side validation for say the Phone Number and the server side validation which I believe is located in the file "confirm_cart.php" and click the continue button the ajax form for entering you credit card details will not appear.