Indeed.  I bet merchants are lining up to adopt bitcoins after they've just seen the USD$ exchange rate drop by 20% in a day.  I saw a recent post on these forums that suggested merchants should charge a 25% premium for their products denominated in bitcoins.  Well, 25% doesn't seem to be enough any more, and further more, why would anyone pay 25% more for a product when they can use a credit card or PayPal and pay maybe 2% in fees?

As a merchant, the only advantage for me to using bitcoins would be no chargebacks.  As a customer, that is a huge disadvantage.  Also I would have to pay a lot more.  Apart from Silk Road, I don't really see a point to using bitcoins.  Judging by the falling value of bitcoins, it seems a lot of other people agree with me.