I think, banks will not be disappear. Instead, theyll start using bitcoins instead of fiat currency with some regulations like in fiat.
You are right, banks may survive, but not with the same facilities. Because bitcoin take care of all usual/traditional banking facilities. Banks will be forced to innovate to provide new services.
Banks will never support bitcoins as it is a threat to their system, banks would keep on regulating as they are doing since ages, and they will never introduce bitcoins into their banking system.