In this case you could find two kind of people. On one hand, you have people that think that it's too much of hassle to understand how bitcoin works, the volatility, fluctuation, and also how to handle a bitcoin wallet, private keys, fees, etc, to them it's probably not worth the time to get into all that since fiat currency is way easier to use. On the other hand, you have the people who simply don't trust a decentralized system like bitcoin since people are used to having a central authority in control of their money, like the banking system.

I think they'll change their minds once the adoption phase gets going, they'll be willing to try bitcoin if more merchants start accepting it as a form of payment, and as demand increases, the volatility will decrease, and as OP mentions, we could end up with a more stable price.