SatoshiDice and the controversy surrounding it has pretty well emphasized that Bitcoin is not going to be as widespread a currency as some of the true believers want it to be. It has a niche use in SR and other semi/illegal things, but it's really useful only as long as the price remains stable (in fact, during highly volatile periods like this, most of the smart SR merchants pack up shop until the BTC-USD rate has stabilized).
However, the blockchain inherently limits BTC from being able to be used in the same way that, say, Paypal is right now, just because of it's inability to deal with a high volume of transactions, not to mention the confirmation time. And efforts to mitigate this through 3rd parties removes the distributed semianonymous merits, thus leading to a position where you're better off just using PayPal or a credit card anyways.
However, the blockchain inherently limits BTC from being able to be used in the same way that, say, Paypal is right now, just because of it's inability to deal with a high volume of transactions, not to mention the confirmation time. And efforts to mitigate this through 3rd parties removes the distributed semianonymous merits, thus leading to a position where you're better off just using PayPal or a credit card anyways.