Ok, you've lost me. If you want to talk about that you need to provide some back information.
"Genius" here implies that several bitcoin-related projects have been hacked recently (MtG, Mybitcoin, bitomat.pl and some more lesser incidents). In his mind, those single-person-ran websites equal to Bitcoin project in general. I can't blame him, it's the interface between people and coins. Thing is, interfaces come and go, coins stay.
Ok, now I see what you're talking about. The problem isn't the money. Its the theft itself and the bitcoin online "banks" have proven to be less than reliable. Combine that with the no chargeback feature of the coin and confidence dwindles from multiple robberies that cant be recovered.