Tons of banks in the early 1900's got robbed or went out of business, it didn't eliminate the need for banks. I think bitcoin will survive beyond the hacks. Maybe some bitcoin insurance agencies should be formed to cover people's losses.

People preach doom and gloom because they are focused on the news today, rather than the impact of that news over years. If you take a longer view of the currency you can see how it could become very successful. Also, the volatility of the price is a barrier for entry for new users. If I'm buying my first Bitcoin today I'd be pretty concerned that my $230 could become $120 over night...that's a scary thing! Why would I put my spending money into something so volatile?