Speculation on LTC price aside, in order for myself (a merchant and buyer) to support Litecoins more, there needs to be better price stability and liquidity. 

I think that once Mt Gox gets on board with Litecoins and the Atlantis Litecoin market has more trading, we'll see some wild swings before stabilization at around 5-10 USD/LTC.  Just my two cents.