2. Six billion people live too far from me for me to hand them cash. Mail is not so good. Plus I don't likely have the brand of cash they want.
I don't think average Joe needs to send cash to people in the antipodes. Maybe once in his life, and he won't mind paying some fees. And people who do these transactions often are (again) not the people who would casually buy BTC in an ATM.
Average Joe doesn't do it because it's been stupidly hard until Bitcoin. I recently paid a guy in AUS for a consult. It was only incidental that I even knew where he was.
This is like saying "Airplanes. pffft, how many people actually need to cross the ocean?". Uh, a lot more once there is a reasonable way to do it.
Bitcoin opens so so many possibilities.