The software generates the addresses, but I have to figure out who I give what address to.

With paypal, you just give your e-mail address.

With bitcoin you got some crazy random address and if you get one digit wrong...oh well. All transactions are final.

And the block chain is already at 20gb. What happens when it's 20tb?

and it's so easy to lose your coins. Just lose your password, or have your hard drive blow up.
and people have been able to steal bitcoins.

This will never catch on main stream.