1) Move money from anywhere to anywhere easily and cheaply.
Banks already do this. Here in Europe, SEPA transfers are generally free, and just as popular as credit cards in some countries.
2) Provide a payment system that gives sellers non-reversible transactions (with the benefit for buyers being cheaper prices from sellers you trust).
Bank transfers are already practically
non-reversible. It's very difficult for a customer to persuade a bank to revoke a transfer. This will only happen in exceptional cases such as phishing. Even in those cases, it's the bank who takes the loss and not the recipient.
As far as I know, a bank can only truly reverse a transfer if the recipient bank (and all correspondence banks in between) consent.
3) Provide an investment that is not subject to fractional reserve dilution (also sometimes touted as the non-inflationary benefit).
That's what commodities, metals, real estate, etc. are for. Banks already offer plenty of portfolios for those.
I don't think that Bitcoin is in direct competition with banks. Bitcoin is going to find applications that are as different to traditional banking as the internet is different to the postal service.
At this early stage, Bitcoin is little more than a curious invention. A solution looking for a problem.
This is true for a lot of technological breakthroughs. Electricity was at some point no more than a curious invention.