Well I'm sorry that I have no interest in throughly explaining myself to someone who doesn't understand what I've already written. I hope that someone else wouldn't mind "translating" or elaborating for you.
Let's me see here...
It seems that in order to make OP's assertion valid, one must simply rephrase "The long term trend for bitcoin value is contraction, not expansion." as "The long term trend for fiat/bitcoin exchange rates is contraction, not expansion."
See, we no longer talking about bitcoin's value--only about the ability of market makers (like MtGox crew, etc) to maintain fiat/bitcoin current exchange rates for more than a month or two. OP is right, bitcoin's true value is WAY BELOW current exchange rates due to bitcoin not having any economy to call Home. So, stop worrying about the exchange rates that market makers are feeding you every day. Instead, start offering your bitcoins to merchants... Let's see if they do value BTC more than their local fiat currencies.
Absolutely. You've summarized quite accurately.
Now, my OPINION is that BTC will never find a use with the wider public because it's "advantages" are really quite meaningless to your average consumer, and CERTAINLY don't outweigh the glut of inconveniences inherent to it.
But what's not opinion is that the exchange rate is massively overvalued and is now headed down to a more accurate valuation as the hype continues to subside.
And by "not opinion", I'm assuming you meant that "it's a fact"?... If so, then I concur: all of the shelves with fiat currencies have been emptied out; only the shelves with overripened "bananas" still remain. If only bitcoin miners could survive on bananas, we'd be fine!
As far as BTC finding its use with the wider public, you and I are of a different opinion. You see, there's still hope that miners would eventually realize that without spending, there can never be a deflation in the deflationary "by design" economy. In order to get from 21,000,000BTCs (monetary base) to 2,100,000,000,000,000BTCs (expected total money supply), all of 21,000,000BTCs must be constantly exchanging hands (and the more hands the better). Miners hoarding bitcoins is equivalent to the central banks (in inflationary economies) raising the minimum reserve requirements of their member banks (or bitcoin users, in our case), thus reducing the available money supply.
As for bitcoin advantages, perhaps you should try looking at the bitcoin network as the best-in-class accounting system/ledger of who owes what to whom. For example, what stops one neighbor (a computer buff) from agreeing with another neighbor (a landscaping business owner) to exchange their skills/services for bitcoins, rather than for local fiat currency? Bitcoins are perfect for that type of contracts.
