What if you went to an Indian casino, exchanged your dollars for chips, and when you went to leave and cash out your remaining chips, they refused to exchange the chips for dollars, and instead decided to close shop. Would you still trust the dollar?
I think you've got your analogy backwards and upside-down. The correct question would be, "Would you still trust the casino chips?"
I dont think you understand this analogy. In this analogy the dollars represent bitcoins and the chips represent mt gox's internal units. They represent bitcoins much like the casino chips represent dollars, but as we learned were not backed with actual bitcoins.
I dont think you understand his question. In this question, the casino chips represent any casino chips (and indirectly, Bitcoins), not just the Indian casino's chips (or MtGox's "internal units"). If one casino would suddenly decide to close shop, would you trust other casino chips equally as before?