Last but not least one can make tons of backups. Once could also setup a bank, even insurance could be made. You could also put your a wallet onto a media (cdrom, tape, whatever) and put it into a safe, like you would to it with money or gold. Then you can have a small wallet.

In most regards bitcoin is just like any other currency. If you are stupid enough to not keep it save it's your fault. It's like walking on the beach with all your money. Simply don't do it!

Maybe I could create a bank, but I'd have to think about away to make myself trustworthy.

If you put your money onto a bank account you also have to trust them. If they mess up their system and nobody knows who was the owner of the money it's exactly the same. Inside the bank your money only exists in a virtual way. Most of the time (not always, because they invest your money) it is backed up by something physical, but if you loose the data to link the physical with the virtual stuff the system is completely messed up.

To make it short: BitCoin is just money, so don't think of it as something too abstract. You can secure it, like every other money.

In most situations it's easier. It isn't that easy to encrypt your money before you put it in your safe, is it?