I agree on one point - markets should be minimal escrow transactions and confirmed by the block chain, not full accounts that Mt Gox can reverse whenever it likes. However without a liquid market there is simply no way to determine BTC value. Gold can be traded for sheep. Fencing wire can be traded for francs. And Bitcoins can be traded for US dollars.
Yes, liquidity is important, but false (or perceived liquidity, which the market makers tend to create/maintain) is very dangerous, especially for a young currency that yet to prove its advantages/applicability as a secure and relatively stable medium of exchange. Who's to say that the reason why USD/BTC exchange rates have been hovering around $13-$14 this past week is NOT the result of the exchanges simply massaging their database numbers to create the appearance that demand for BTC is on a par with supply?