But nobody quotes in satoshi's. everyone quotes in bitcoin (the whole unit) of which there is only 21m. If everyone was quoting in satoshi's then 1usd = 0.00000266 doesn't sound very over priced does it.
I'm just saying the high valuation caused from quoting in bitcoin whole units makes it SOUND over valued.
Agreed, there is certainly a psychological factor to it, which is why as someone who only got into this recently I purchased litecoins more heavily.
Yes, BTC is divisible to the 8th digit or whatever, but IMO most non mathematically-inclined people are not instinctively comfortable with dealing in fractions. I wouldn't be surprised if a significant minority (or greater) doesn't understand the different between .1 and .01.
edit: Then again, as time passes and payment systems such as BTC debit cards and smart phone apps are developed and popularized, this problem with perception might work itself out.