The most important thing any currency needs is (at the very least) day-to-day stability of value, and no P2P currency that I know about has that yet.
The exchange value of bitcoin is not pertinent to its utility as a means of executing and recording transactions. The value of bitcoin is not relevant to a user who merely wants to send money.
Sure it is. A volatile price means greater risk on the part of the user. So he thinks maybe this is not such a good thing to use. Maybe I should use something that does not carry that risk.