Time to go on a spending spree at Overstock!

[Rannasha]

I've found that paying with bitcoin to overstock.com isn't cheap.  The value converter in my Mycelium client consistantly quotes the bitcoin price about 10% higher than what Overstock says it is. 

Your wallet probably uses MtGox rates, which don't really have a basis in reality. Overstock uses CoinBase, which is tied to the Bitstamp price, which is far more reasonable.

[FUR11]

A merchant can save the ~3% and shed risk, but what is the incentive
for joe consumer to bother with bitcoin?

You do not have to use a credit card. Not every one has credit. Not everyone will use their credit card online cuz hackors...

If a guy goes to a BTC ATM he does not even need a bank to buy stuff online.

Edit: Also with credit cards you can only have stuff shipped to your address. With BTC you can ship to where ever you happen to be.

I'm sure there are more advantages.

Actually, when I pay with my credit card, I have stuff shipped to my work address, which is different than my billing address.

How does that work? I can't get anything shipped to me other than my home/billing address.

Most (all?) places have a section for billing address and a section for shipping address.  However since it's assumed that most people are having things shipped to where they live, when you fill in the billing address info it's copied over to the shipping address section.  You just have to manually change the shipping address to wherever you want it shipped to.