At present I see people use PayPal much than bitcoin as PayPal has reached people through various forms than our bitcoin. People hesitate just it looks to be entirely new technology.
There are many aspects that may hold back new people to use Bitcoin. The media aspect is a big part of it. They have been reporting bad news after bad news. When there is a bomb explosion somewhere in the world, they directly say it is financed with Bitcoin while there is no proof at all. I never see them report anything good when it comes to Bitcoin.
Media has the power to make something to grow in a short time as well it makes to fall in a very short time. But I haven't felt media considering bitcoin as a big issue.
The problem is that the average person is very sensitive to what the media is saying. If all they say about Bitcoin is nothing good, then the people will believe that. They will look at Bitcoin and see it as currency of the under world. It's being used by criminals only to buy drugs, weapons and such. So yes, you are very right here. The media can make or break things.