I really like BitCoin, But the biggest problem is the "goldrush" is over.
Yeah, BitCoins are something of a fad like Beany Babies where an artificially restricted supply allows early adopters to make money off of late comers who foolishly think that they can make money off of people coming after them. From an economic standpoint, BitCoins are simply collector's items. Collecting BitCoins isn't much different than, say, collecting 1973 pennies. There are a limited number of them and their value is primarily determined by the demand for them from other collectors.
The rigid nature of the BitCoin supply is very appealing in today's economy as people want to acquire assets that retain value. Unfortunately, most people have a hard time understanding that value is not determined just by supply, but by demand as well. The very fact that the cash value of BitCoins is going up right now is evidence of this. Most of this demand, however, is not from people who want to use BitCoins, but from people who see them as an investment. After a while the number of new investors will peak, demand will go down, early investors will cash out, supply will go up, and the market will crash.
I doubt that BitCoins will ever see much mainstream use for conducting transactions, primarily because of the complexity of using them and because their unregulated nature will prevent them from being a stable currency. The fact that all transactions are public will discourage shadier operations from using them. They might see some use in online games where BitCoins could be used as the in-game currency.