"Fair" means they don't cheat the player. "Provable" means they can prove it. There's no lying.
SatoshiDice has all their activity publicly available on the blockchain. They have less opportunities to cheat their shareholders than any traditional online casino. It would be trivial for a traditional casino to say "we had a high roller come and win a million dollars from us. Sorry, no dividends this month". How would the shareholders argue with that?
Gox and their DDoS has nothing to do with this, not even a little bit.
Here is a situation though, Satoshidice knows their own secret word ahead of time, thus they can submit bets to themselves as if they are the player, since they can potentially "be" the player and know the secret word ahead of time (since they are really Satoshidice) they can thus submit selective bets and raise the house edge to such a degree that no one of the investors would be getting a cent.
In the "real world" there is so much surveillance and protocols that casinos have to follow that claiming a person won a million dollars without it happening would be virtually impossible. Funny that so many people are defending their precious stock yet they fail to see and to point out this simple flaw while claiming some algorithms/blockchain protects them on the low level.
We can now establish who is right in the first argument: Me
Satoshidice claims it is "provably fair" but decides they will not prove that they are fair and so far it hasn't been proven once. Now I do understand your claim that they must not prove that they are fair to really be fair but then it's the argument of religion basically, if I hold my hand behind my back and claim I have a couple of pounds of diamonds in my hand I would be the one making the statement thus I would be the one needing proof (e.g. showing you the diamonds) and not you needing proof of me not having the diamonds in my hand behind my back in order to establish that they really are not there, since I have no initial proof of my statement it is disregarded.
Makes sense? Gox has everything to do with it since both of the companies are ran by teenagers that fail to employ the proper people to do a job they are unqualified to do out of pure greed.
We can now establish who is right in the second argument: Me
Anything we can to do reassure players is in ours and the communities best interest.
Interesting that the mainstream will roll with the established website despite the utter stupidity in doing so while such alternatives exist.
WTF?
SatoshiDICE is provably fair for your own games. Provably fair is not a magic bullet - it doesn't suddenly allow you to prove the house isn't making any bets, or that the house isn't cheating their shareholders, but that doesn't mean something is not fair.
And, wow, it's ridiculously easy to prove s.dice is provably fair.. get past secrets, generate random hashes ("txids"), repeat many times.