I think that bitcoins will work beautifully as a transactional currency.  I do not see people using them for savings.

However, I consider the seperation of transaction/saving as a great thing.  People can use bitcoins to do buisness and then convert into gold for saving.  This would create a nearly perfect monetary system.  Untouchable by governments and reliable through the centuries.

One of the main weaknesses of fiat dollars is that they are used for transaction and saving.  Dollar users are 100% tied to the whims of the central bank.