if current system is too bad, go use person-2-person transactions.
Because that's so easy to do right? Wake up. Bitcoin will die a slow death if the only thing left is P2P exchange.
no it wil not.
How do you plan on getting the merchants and average non-tech savvy Joe onboard with using bitcoin as their main form of currency if they have to jump through hoops to get some in or out?
Believe it or not the rest of the world outside the (pretty small) bitcoin community very much runs on fiat. If you don't make this easy as hell as in the click of a button or an ATM machine screen, then they won't get onboard. Nobody will take it seriously and it will remain traded by just a bunch of "geeks and hackers" as the MSM puts it.
Exchanges are the key to this and our current Achilles' heel vs banks and governments until the world is free of fiat.