I don't think we are quite ready for prime time yet. Security wise this system seems amazingly robust, the weak point is the Exchanges. There are still so few that The Corporate States of America can cripple the currency in the blink of an eye by going after exchanges. I've only heard of a handful which is very sall for an estimated user base of around 30,000 BitCoiners. This won't kill BitCoin but it will set it back significantly.
Not if they're based in countries outside of the US.