For me, its that nothing that I pay for accepts payments in Bitcoin yet (Gas, car insurance, electric bill, AT&T bill, etc.)
Also, another thing is, why pay 1% in transaction fees when you can get 1-5% cash back using your credit card?
You don't pay %1 unless you are doing micro-transactions "and you can do this in bulk if you want to save the fees", The cashback is from the fees the creditcards get and BTC is just 0.0001 BTC fee for miners...
I agree that BTC has a long way to go for getting globally accepted, if it does then BTC field as a whole would improve.