Two car garage is at the top of paved incline. The 36" X 20' entry section of asphalt has worn out. Should it be replaced with a drain grate, or replace the worn out asphalt? Or would paver stones be a good fix?

That is pretty much up to you. I think a grate that big would be unattractive. Pavers are easily replaced if broken. Stamped concrete?

If the garage was at the bottom of an incline a drain would make sense, at the top, it doesn't as the water will naturally drain away from the garage.