People need a real reason to use bitcoin over fiat, and so far I haven't seen really compelling reasons.
Exactly that is missing. Especially in well developed countries with a top notch fiat based payment infrastructure. It completely wipes away the need for Bitcoin being used as currency tool. If you purely look at online spending purposes, then Bitcoin is still the top leader for me. I use Bitcoin in 90% of the times when I transact with people around the world, or do an occasional purchase at a web store accepting Bitcoin.
That's heresy, I know, but to me bitcoin works much better as an investment tool and store of value than as a currency to be adopted for spending. But we'll see.
The investment aspect, as well as the store of value aspect, will be the main points of Bitcoin that people will be interested in. Gold is no longer the sole ruler in the market that people can use as a hedge, store of value, investment, etc. Bitcoin is here and ready to be used by people appreciating what it can offer them. I hope even the hard headed average joes will also realize that. It will be an insanely though job to get them on board.