I think we are in agreement on almost every point, Clobered09. :-)

Perhaps the only point I might disagree with you on is that bitcoins are software. I think most jurisdictions have fairly strict definitions of what constitutes 'software'. Although the implementations of the bitcoin protocol are obviously software, the bitcoins that they 'count' are (I think, self-evidently) data within and between the software instances rather than functional software in and of themselves and especially since ownership of that 'data' is (re)assigned to individuals who are not required to possess the bitcoin protocol software themselves (although they obviously have to interact with the bitcoin protocol software directly or indirectly in order to receive or send their bitcoins).

I suggested in one of my earlier replies that I thought that at the very least, any jurisdiction might be able to reasonably accept bitcoins as being data owned by an individual whether or not that jurisdiction considers bitcoins to be money/legal tender/etc and that an individual might be able to make a case for his (bitcoin) data having been stolen (though I'm not sure that all jurisdictions currently recognise data as something that can be stolen but I feel that most of them would). I suppose the theft, if proven, would ideally result in the return or direct replacement of the bitcoin (data) to its rightful owner but if that is not technically possible, then the owner might seek restitution in financial terms (e.g. fiat money) instead...and that's where the interesting debate would occur with regard to what is the financial (fiat money denominated) value of the bitcoins.

What do you think?