... Meanwhile these companies producing their mining products are reliant on third-party vendors to exchange their bitcoin to pay the vendors that only accept local currency for the raw material needed to make the finished products. ...
Ya, that's a really good point.
All these ASIC developers/manufacturers are asking for and accepting payment in Bitcoin, but they still have to convert those bitcoins into fiat currency to pay their vendors. Theoretically, if everyone paid KnCMiner in Bitcoins -- approximately $7 million so far -- shouldn't we start seeing some pretty large BTC sell orders on MtGox soon?