Well! It looks like it's going to happen!
Cryptosmith just announced an off-ramp from BitSilver to physical silver.
https://bitsharestalk.org/index.php?topic=14266.msg185581#msg185581By accepting BitSilver they can lock in your price in ten seconds - none of this "wire the money to us first and then wait days to see what the price is when your wire gets here."
I guess it's just starting development of the site, but they are certainly aiming big.
Look at this list of countries they plan to ship physical silver to:
Australia
Austria
Belgium
Canada
Denmark
Finland
France
Germany
Hong Kong SAR China
Iceland
Ireland
Isle of Man
Israel
Japan
Luxembourg
Mexico
Netherlands
New Zealand
Norway
Portugal
Romania
Singapore
South Africa
South Korea
Spain
Sweden
Switzerland
Thailand
United Kingdom
United States
Vatican city