You haven't dealt with a lot of consumers, have you? The concept of an insured, high security means of exchange that doesn't have many disconnected and possibly untrustworthy entities, that can also allow you to dispute a charge when the product or service delivered is unsatisfactory, without having to resort to bringing a lawsuit, is extremely appealing...
People still use cash.
Synaptic has a valid point: consumers do
want a chargeback option.
sellers don't. sellers prefer to base their business model on reputation. they don't want third parties getting between them and their buyers.
consumers want transactors which save them the embarrassment of returning goods 'face-to-face'. and yes, some are thieves, or simply dishonorable.
there's room for both models - i don't see a problem.
no seller is going to limit himself to one payment system. i can see a time not too far off when Bitcoin sales are offered at a discount roughly equal to the fees from other payment processors + a pooled fraction of theft. something like that.
the good thing in all of this is that entities like PayPal will stop kissing consumer ass, and chargebacks will become much more difficult: they always should have been.