Wow, someone with activity of 3 shaming Casascius.
While your points are valid, they come from a time when most of us were not so concerned and felt happy to trust Casascius. Of course now everyone and their mother is in bitcoin and it's impossible to figure out who is who. If you don't trust it. Don't buy it. Simple as that.
What is the value of physical bitcoins now? 10000BTC? 50000BTC? What will happens if all of them will be the subject for a massive fraud in nearest future? What will newspapers print about this? What will be the reaction of a public? Everyone said that physical bitcoins are secure but than it appears to be not, bitcoins are junk?... this will trigger the wide regret in bitcoins and the drop of its price. Even if you haven't any physical bitcoins you will suffer. How many bitcoins do you have? Would you like to lose some money because of this?
So what exactly do you propose? Building a time machine, going back to 2011 and asking Casacius not to make them? Because I don't see what your point is. What is done is done. Maybe they weren't the best idea at the time, but you, and everyone else, is just going to have to live with it, no?