The only way to improve bitcoins is to base them on some kind of real wealth. Yes, they're based on the cost of electricity, but once electricity is used, then it's lost rather than storing it as a battery.
The problem with fiat currency for the US dollar.
Consider what banks in the USA do. These videos explain it better than I can.http://www.youtube.com/watch?v=peiTfY7Bx4chttp://www.youtube.com/watch?v=OdtnPrHVHM4
Basically banks create a credit bubble lending imaginary wealth and putting a lot of money in circulation, then they take all that money out of circulation and people can't get loans, there's unemployment. Then when people have no more of this imaginary wealth, the banks can then get the people's real wealth, their houses, their land, their businesses, their cars, etc.
Namecoin tries to be based on real wealth, but it's based on the whole domain name cybersquatting (cybersquatting of nontrademark names is legal) wealth by cybersquatting (people who do it try to make people call it by some euphamism) of a massive load domain names and then trying to scalp them for a higher price. I don't know what it should be, but there needs to be a better real wealth basis than this. I also thought about basing it on some kind of advertising, but it's too complicated to keep people from cheating for it to work.
Another idea was something like a Tor network of IP hiding that generates coins that way, but it's too ephemeral instead of being a permanent real wealth.
Maybe somebody here can find a way to base bitcoins on real, lasting wealth.