What you're saying may all be true, but the value of any currency is based on people's faith in it. It doesn't matter if it's just corrupt or incompetent companies failing and not the "Bitcoin protocol" itself. When the average person turns on CNN and sees story after story about Bitcoins disappearing, falling in value, or just general chaos in the Bitcoin market, they're going to avoid it like the plague. Fewer reputable businesses will devote the effort and take the risk of accepting Bitcoins as payment. Any chance of it ever becoming a ubiquitous global currency, not just a plaything for computer geeks, is quickly dying and no reasoned defense of the concept is going to change that. Hand waving away the problems by blaming individuals just misses the point that this system will not ever work on a wide scale until it is regulated, likely to the point where any value it has over other real currencies is lost.