I remember watching that video of him buying his first coin when it was initially posted and was wanting to travel to the other end of the country just to buy some coins via the ATM cos I was paranoid about buying BTCs with bank transfers, but I decided against it. I bought in a few months later, but I rue that procrastination. The above article is definitely something that I think will become a problem for those who don't fully understand what they're buying into. It's definitely a technology you have to spend a while learning and familiarising yourself with before you take the plunge.
We're working on deterministic wallets for bitcoinj, which combined with better UI will hopefully make it much simpler and easier to back wallets up. I'm also trying to convince Andreas to do automatic cloud backups by default. Users who decide later they don't want to trust their phone manufacturer/Google to keep wallet backups for them can do a key rotation to invalidate the prior uploaded backups.
How safe is the cloud? I've never used it, but I'd be a bit apprehensive about uploading my wallet to anything.
