I can't pay taxes with it. I can't fund my credit card with it.
Sure you can.
That's right. My understanding is that there is a way to fund a debit card - Bitcoin-Debit.com I think it is, and there may be other methods, if I am not mistaken.
Why do people value Bitcoins at $11 a piece?
For the same reason why people value gold at $1700 per ounce.