Ability for automatic offsite encrypted backups that occur after every transaction (storing bitcoins in the cloud) and "password recovery" features in those cloud services
Someone could sell a "cloud client" that does this. However, you have to trust the provider that they won't use your Bitcoins.
Ability to easily use multiple wallets and transfer between wallets (I'm talking large buttons in the client that are like "Checking Wallet" "Savings Wallet" etc)
Wallets should be easily importable and exportable from the GUI. However, simultaneous usage of multiple wallets would be more confusing, don't you think? The whole point of the "savings" wallet idea is that you generate an address and then send money to it periodically, but you don't need to open the wallet unless you want to send from
Ability to have a physical card that bitcoins can be transferred to
If we're assuming that people can't back up or remember a password, the current QR code implementation in Bitbills probably won't be useful. I suppose someone could just encrypt and distribute their wallet and then write their password on a piece of paper and use it as a "Bitcoin card", but then the security of all of your money is dependent on a single piece of paper.
Easier ability to store bitcoins in a bitcoin bank
Bitcoin banks might be an excellent business but the market doesn't exist yet. Right now most people are content to control their own money.
Bitcoin banks with legally binding guarantees (ie; you can store up to 10000 BTC with us and if we get hacked or detrayo your btc somehow, we are on the hook)
Who would enforce this? The US? Bitcoin is not legally considered a currency anywhere to my knowledge. The bank could in fact just take your bitcoins and not return them. There would be zero legal repercussions.
More services like My Bitcoin
Sure, the market will decide, but this would be an easy way to steal people's bitcoins.
It seems like you're describing Paypal. It has a worldwide network, an easy to use interface, option of physical card, legal liability, and an online banking system. Apart from fees, there's no reason for anyone who can't back up or remember a password to use Bitcoin at all instead of Paypal.