That puts it in a category of protection, as companies trading options or derivatives don't hold to commodity centrally they have a broker, or separate bank or service hold their assets knowing they can DO MORE TO PROTECT them.
Yes but those services all have legal contracts and follow strict rules to hold those commodities. Also I have work with hedge funds to secure their bitcoin holdings and while legally I can't comment how I did it or what software was used. They didn't rely on a company they knew that wasn't how bitcoin works.
Yes, but addressing your earlier comments. Saying no one will use us is a defamation, and is against all bitcoin stands for. Free market and making your own choice. I've worked with local businesses pitching this and introducing them to bitcoins along the way. Most of them hire 16-18 year olds, so how can they trust these guys? You just mentioned it is bad to trust someone with your coins, so using your own words against you how can they know those kids won't steal their coins? It would be hypocritical at this point to try to answer that. Something has to be done to protect the shop owners.