Wow, I just read this whole thread.  First a massive thanks to Fellow Traveler not only for the work you're doing but also for patiently explaining these integrated concepts in various ways to help people with different partial-understandings understand it a bit better.

For me a question that has probably either been already replied to above that I missed or maybe something those more familiar with colored coins have dealt with already:  The weakest link seems to me to be fiat represented by colored coin.  Are we talking for instance about a generic GBP colored coin, in which case the system is as strong as its least trustworthy issuer, or about branded coins. e.g. if Max Keiser were to agree to put his name to coloured coins and I were to take cash to his representative who took it from me to keep it locked away until redeemed it would mean the people I'm dealing with would need to deem KeiserCoins as dependable?  I'm not saying this is necessarily a weak link in comparison with what we have already but from what I understand it is likely the weakest link in the proposed solution as is.  Have I got the gist of this aspect of it right or have I misunderstood something?

I'm loving the way the whole Open Transactions thing can work especially in conjunction with coins (bit, alt or colored) not even needing to sit on the servers and with the Bitmessage system.  I had not looked into either before this evening and the idea of combining them all with a means of compiling an order book of truly distributed and anonymous p2p system is just beautiful.

Thanks again

PS.  .75 btc sent your way (1NtTPVVjDsUfDWybS4BwvHpG2pdS9RnYyQ) towards bringing this to fruition quicker.  Someone above suggested OpenCoinInc might try to buy this out too.  May I request if you do get an offer and are tempted that you first give the community the opportunity to crowdfund a competing bid?