Why would Erik have sold bitcoins while Satoshi Dice was/is operating?
I fail to see why that question is relevant to anything we are discussing.
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From an investor's point of view I do not think it is very reasonable to use the BTC as numeraire due to its lack of capital pools and incredible volatility. Pretty much anyone who bought between April 2012 and March 2013 [would include all IPO investors and even many non-IPO investors] who have held for the long-term have had tremendous returns using the USD as numeraire.
Why would people use USD as the numeraire for an investment in a service whose website cannot even be accessed from the United States? Why would people use Fiat as the numeraire for a website that only operates in crypto?
Why would people invest in Satoshi Dice when they cannot appreciate the volatility of bitcoin? The market forgives no one.