Yep, this is my other theory, is that Bitcoin will NEVER be popular for regular domestic purchases, even online. The regular consumer simply will choose credit cards, every single time (unless for some reason anonymity is highly valued).
Not necessarily. But there just isnt any decent infrastructure in place. That might change with
1000 bitcoin ATMs. Assuming the fees are low enough, the current 3-7% fees existing ATMs take is just plain robbery. Add some bonus similiar to cash back and bitcoin may actually be a valid option for "normal" people. But thats still a long way to go.