1. I agree with this point. The main obstacle is portability and usability. Fortunetely within the past week or two, this problem is being solved on many platforms.... This
works flawlessly and opens up the door to all kinds of things. When things like this
start to happen, bitcoin could become huge. Most likely there will just be a Paypal app instead, but there is a significant non-zero chance that bitcoin could corner that type of thing first and really wedge itself into the mainstream.
2. Meh, most of my friends who I've talked to about it have been satisfied with "no, I promise you can't just copy the coins, and it's safe". Although to be fair, I don't think they were interested. Anybody who is truly interested in using it as money would surely want to know what they were doing. So I can see your point here, although I'm not as worried about it as you are. All that needs to be done is finding a short sweet brief explanation that makes them feel it's safe and reliable.
3. Surely you can explain that time and electricity have value as well, so bitcoin is also "backed" but by a different form of limit resource. (Then remind them that dollars aren't backed.)
4. Yeah, so, and, but, therefore...??
5. Are bitcoins more easily lost than cash??? The only reason you don't lose cash is because you keep it in a bank and can sue them if THEY lose it. So for bitcoin, you just keep it in a "bank" like mybitcoin or an exchange like mtgox because if they fuck up you can demand--- OH WAITAMINUTE.... nm fair point. GOXED
6. If there is use, there is demand. If there is demand, there is a market, legal or not. Most likely instead of bitcoins being illegal, you'll just see Amazon Bucks and Chase Coins which aren't traded 1:1 with USD. And because people are always brand loyal because they are comfortable with what they know, those will be used far more than bitcoins. All the while, the money you pay your taxes with will still be used everywhere as well and be worth less and less.
All of this is the beauty of Bitcoin. It HAS a purpose. It IS USEFUL. It is BACKED by effort and as stated, serves a purpose that nothing else serves, which gives it INTRINSIC value. It's very programmed nature means it CANNOT be stopped. Something similar may popup, but where it's Bitcoins or Bytecoins or FutureCoins, the type of thing that Bitcoin is is the future of money. Bitcoin will prosper, or it will at least be the first and lay the road for what does end up taking root. It's just too brilliant--it's what money should and will be.