Isn't the whole point of Bitcoin that you can move the _actual_ Bitcoins around. If you are going to give that up, what have you won?
What makes you think you've given anything up? You can still move bitcoins around yourself through the network. All we're saying is that high-speed, on-the-spot transactions will still need a trusted third party to facilitate.
So long as people are capable of evil, various forms of escrow services will continue to exist. That's all an immediate-settlement payment processor is -- an escrow service.