I think this lyric refers to a woman who gets a brazilian wax because her bf complains about the forest but then gets tatoos on there, and now her man is singing about it.
I think this thread refers to a poster who went out and had several beers and hits off the crackpipe for lunch today!
When I was on one of those bus tours around Los Angeles, the tour guide told some, probably made-up, story about there being a Golden Age of Hollywood hangout that was nicknamed "The Paradise" that was eventually razed and is now a parking lot. And, according to the random tour guide, that's where the inspiration for the song came from. I think he's full of crap, though. Especially after reading this page: http://jonimitchell.com/library/view.cfm?id=1427