Most of the people don't have a clue how the Internet actually works (and they don't need to), and that doesn't stop more than a billion people to use Facebook daily.
This actually illustrates the point beautilfully, what would happen if, suddenly, one billion people couldn't use Facebook anymore?
The idea that this would make the internet one fifth less useful is fucking ridiculous on its face.
then the alternative is regulation, insurance, consumer protection and all the other centralised, flawed systems that don't come cheap either.
Absolutely not. That is only true for services that touch fiat.
Have you had a look at OpenTransactions for example ?