First of all, its hard to compare times from different eras, as has been stated here ad nauseum.
Secondly, medals and championships do count more than times. Zatopec is still arguably the best distance runner of all time (save, perhaps, Haile) because of his incredible 5k-10k-marathon triple. According to your argument, every NCAA champion in the 5k and 10k (and most All-Americans) is a better runner than Zatopec simply because they ran faster. Medals are a better comparison becuase it shows which person is the best given the technology of the time (shoes, tracks), training methodology and information (exercise physiology) and mental barriers of the era (like the 4 min mile).
Yes, Paula has run much faster than IK, BUT she hasn't shown the domination of the international running community demonstrated by IK, Zatopec, or Haile. If she goes into the 2003 WC 10k and demolishes the field, or starts routinely spanking all the African competition that had previously beat her (Adere, Wami, Tulu), then we can start to recognize her as the best female distance runner of all time. However, she has not demonstrated this yet on the track. She is the best female MARATHONER hands down, but she still loses out on the track thus far. The future will tell...I fully expect her to dominate on the track, but we'll have to wait and see.