why couldn't a bitcoin business buy Dwolla?
What for? Bitcoin businesses were interested in Dwolla only because of their "no chargeback" policy! Now it is quite clear they do not have such a technology or know-how in place. So, they are not attractive anymore.
How do you make USD cash payments to purchase bitcoins? I don't think a bank wire is very appealing to the mass market (which is precisely why bitcoins have a future).
I have a paypal account directly linked to debit my bank account. When I buy from Newegg, I can pay instantly with just a username and password, without having to put a credit card number online. You have to admit this is very convenient for the mass market.
Dwolla certainly does have many advantages beyond the no chargeback policy.
- $0.25 per transaction
- Infrastructure and relation already built with banks
- Convenient and easy USD deposit method for mass market
In Canada, Cavirtex allows online bill payment or email money transfer, so the problem is pretty much solved (although still much slower and less convenient than paypal, for many users).