Bitcoins will always suffer from the fact you need a few confirmations to be sure your transfer is going to stay in the chain, so they are not as 'instant' as other forms of electronic payment.

Unfortunately unless you trust some central authority(as you do when you use a bank, or a credit card, or... MtGox), this delay is needed.

Also, ATMs - how many people actually use these regularly?  I'm just using my debit card to grab physical cash... okay... if I'm doing a legal transaction with that cash, it's much easier to actually -use the debit card- for that transaction. 

I use cash to like, pay the kid next door to mow my lawn.  Which if you get into the little details probably isn't actually legal.