"Quite frankly the credit card security system is awful, bitcoin doesn't have to work hard to beat it."
You forgot to add "...in the US".
The rest of the developed world has chip and pin and 3D secure, that obviate the vast majority of credit card fraud for merchants.
Chips are simply harder to copy. All of the same risks above still exist, they're just moving the hurdle about who can copy them. A
research paper on the topic.
edit: Thinking some more, making something
harder but not impossible to copy still has value. Of course I agree that chips are better than magnetic strip, but there are still issues.
It's another illusion: You are still able to make "card not present" transactions with CVV, which is required for purchases over the internet. No codes rolled and the card is static. They dip their hands into your account.
BTW I'm not from the US.