If its price is extremely volatile its not a stable store of value. Period.
It depends on the time scale.
Yeah, you need to look at the bigger picture. This is still early days for Bitcoin. Something so new is bound to have its problems before it steadies itself out.
Bitcoin just crashed to $102 on BTCE. Litecoin appears to be more stable.
For the time being, but Litecoins value tends or tended to follow Bitcoin. It's still pegged to BTC remember.