To paraphrase Eric Voorhees,
Bitcoin is unfortunately the name of two things.
1) it is the name of the Bitcoin protocol, which describes how the block chain, mining, etc. works.
This protocol performs some useful functions that no other money system can currently match. (Fast cheap transfer to any where in the world, robust etc etc) The Bitcoin protocol clearly has a value, and the value comes from its utility.
2) The Bitcoin protocol has been implemented to allow transfer of a digital currency, this currency is also called Bitcoin. A Bitcoin has no intrinsic value and is commonly misuderstood to be what Bitcoin is all about.
The bitcoin protocol and bitcoins per se cannot be seperated when you talk about intrinsic value. Bitcoins cannot exist outside the protocol and the protocol has no meaning without bitcoins.
Apparently many people disagree with you that the bitcoin protocol has no meaning without bitcoins because people are willing to pay 40 bucks for litecoins using the same protocol.
Fact is, the scarcity argument that BTC is limited to 21 million is a complete and utter myth. It can be replicated a gazillion times over with the exact same properties, just called by a different name.
How absurd would it sound if you applied this false btc scarcity logic to something like gold. If tomorrow, someone invented material that looked and behaved like gold, the exact same properties, etc with an unlimited amount that can be created but called it Koalapuss instead of gold, would gold be scarce anymore ? Obviously not, the price of gold would plummet to zero.
I can see value in the bitcoin protocol. Bitcoin itself is worth nothing. Zilch. It is no different then litecoin or quarkcoin or tulipcoin. And all of them are worth nothing because they can all be run on the same bitcoin-like protocol and therefore an unlimited supply of these 'coins' can be created.
When this finally dawns on people, watch out. You'll be seeing bitcoin suicides. Whether intentional or not, this has all the makings of a grand pyramid model. In a hundred years, btc might be talked about similar to how tulipmania is mocked now.