I'm form Germany.
I think this cyprus discussion is really overblown. The only reasons it's getting media attention is because Cyprus is part of the Euro.
I think there are many parallels to Iceland which was already mentioned in this thread and finally after some bickering it'll be solved the same way: let the banks go bankrupt and let the greedy investors pay.
In no way does this Cyprus thing show the weakness of the Euro or other fiat currencies it just shows that unsustainable business will fail eventually.