I think what you are saying has a point, but before that happened and the amount of bitcoin in the market gets small, it would keep increasing its value first, and if it all was lost because of human error, people can easily make another bitcoin with the same value and same amount, so I think its not gonna be a very big of a problem.
I think that's impossible because bitcoin has become a digital currency globally, even though it's not official. But the number of users is increasing, for those who are active in trade and investment. Bitcoin will never disappear, but Bitcoin will probably experience some regulatory changes which means accommodating government policies in each country.