We don't ask anyone to take that risk.
This is the price of ultimately controlling your own money. Bitcoin makes it possible to store money in a single file; anyone who does not like this should not be using Bitcoin. If you are likely to forget a password, don't encrypt the file, but risk theft. If you don't want to back up a file, try your luck with the longevity of a hard drive. This entire thread is debating a security "threat" that is inherent in any system which gives you direct possession of anything.
That's fine, if you want bitcoin to only be used by libertarian nerds.
I'd be interested to hear your ideas for how we might make Bitcoin secure for those who won't back up their wallet and won't remember their password without losing the decentralized aspect of Bitcoin. Bitcoin appeals to "libertarian nerds" because it gives users control over their own money. Would you give up control in exchange for security despite laziness? Use a USD bank.
exactly what i think. my "dream" is some kind of banking or credit card, that has an intrinsic unique key and a passphrase -- just like EC cards today have. your actual wallet is stored at a central bank and thats where the real transaction happens.
the device where you put the card in just get's a token for verification and that also enables instant payouts. especially, the "bank", where your wallet actually is, pays for you and also manages your wallet to get the confirmations later.
Bitcoin banking of this type would be an excellent business for anyone who wants to build it. It would allow some people to give up control in exchange for security/convenience, but not force it upon all users. Though you'd still have to rely on a user remembering his or her password.