Sounds like a very interesting direction! In what manner does the receiving party accept the Dollars? How does one transfer Dollars into the service?
The "interface" to the rest of the world, so to speak, is only Bitcoin. Bitcoin in, Bitcoin out. So in order to fund the account, you will have to buy bitcoins from somewhere else and transfer them. That might seem like an unnecessary step (use USD to buy BTC, just to have Bridgewalker convert it back), but I cannot and do not want to accept USD. Others are much better at selling coins and Bitcoin is the universal glue between us.
Something like this will be the killer app that brings Bitcoin into Joe/Jane average's living room/phone handset.
While nerds like us would probably rather hold bitcoin than bankster paper, a method for peeps to hold fiat while using Bitcoin purely as a payment network is ingenious and needed: perfect competition for Western Union and its ilk.
Thanks! I absolutely agree. This is certainly not for everyone and I am all for doing everything directly in BTC. But this is a middle ground for people who are not quite ready to trust some weird internet money, but see the appeal in the Bitcoin payment mechanism as a kind of "cash for the digital world".