Could you expand on this please? I feel like paypal is pretty easy to deal with as a consumer. As a merchant it's a completely different story of course, but most consumers don't know or care about that.

There are some drawbacks to using bitcoin for normal online purchases that could also be done with fiat currency:

• You're exposing yourself to massive forex risk (working on mitigating this )
• Bitcoins move the risk of a disputed transaction from the merchant to the consumer. I don't think consumers are compensated for this via lower prices when paying with bitcoins, or are they?

I know you can also buy gift cards with USD. Are the prices cheaper with bitcoins (due to the increased risk of credit card fraud since gift cards are almost cash)?

Yea... internet services could be a very good use of bitcoin. They can be provided/consumed by anyone in the world, and bitcoin excels at international money transfer.

Thank you for all the feedback guys. Good stuff!