I would say that Bitcoin's protocol is almost perfect so all the problem you have list is not bitcoin's fault for per se. If people are going to educate themselves specially protecting their wallets and assets then there will be less hacks and such. If you want to be your own bank, then protect it at all cost. Is bitcoin design to replace the fiat system? Personally, I don't see it like that, it was design to be an alternative and not a replacement.