So how do we get from here to there? I think the only real answer may be, unfortunately, speculation.
No, we need less speculation, way less volatility, we need to make the blockchain scaleable to be able to handle an exponentially higher amount of transactions (as it is now, a single gambling site [satoshi dice] has clogged the blockchain to an almost unusable amount), we need a user friendly way to get money into and out of the system, a better exchanges that are trustworthy
and can handle increased volume, a non poisonous community that doesnt allow scammers and ponzis to flourish (the lending board was an abomination last time I checked), increased and ubiquitous vendor support,
....and thats just the tip of the iceburg.What we dont need (assuming we want BTC to succeed as an experiment) is for BTC to be just a speculative tool for internet nerds, that gets pumped and dumped repeatedly until everyone loses interest.
You are missing the point. Yes, bitcoin needs to build its economy more to become a viable currency. But the ONLY way that can happen is if bitcoins are worth a lot more than they are right now. Currently, bitcoins are in a very niche market, and companies aren't going to want to support it if not many people are using it. Bitcoin needs users before it needs merchants. The volatile, speculative aspect of bitcoin is a side-effect that can't be avoided if bitcoin is to grow past its niche stage.
So yes, speculation DOES need to happen alongside mass-adoption. I don't see any other possible way for bitcoin to become successful, unless you outright ban speculation and close down all exchanges that engage in it.