The elephant in the room here is that the FinCEN ruling is pretty clear that the operator of a machine like this would require a money transmitter licence, which would in turn mean KYC compliance. In reality if you walked up to this machine it would say "Please enter your username and password". The only way you could get an account would be by sending off all your identification documents for verification. The patriot act killed this invention before it was even born. Please tell me I'm wrong, I so want to be wrong.
So how about if you have to insert your Bitcoin card first (like a bank card or visa card) rather than username/password. Don't you already require documents to authenticate on Mt.Gox in order to trade? (I don't use Gox personally, as I live in Canada and Virtex generally has a higher rate of exchange!
Would seem to be the same level of authentication.
Then in countries that require it, you use your "Bitcoin ID" card and enter a PIN, just like a normal bank machine. Beauty is the card works in ANY Bitcoin ATM in ANY country in the world... so you can withdraw local funds from your bitcoin account when travelling, and deposit any remainder back into BTC before leaving the country.
Both cases (local or travelling) you are avoiding the banks and the hassles associated with it. Me personally, I'm being all above board when it comes to BTC, so this would just be a huge time saver for me. I'd love to have it when someone owes me $20 to deposit it directly to my bitcoin account!
