Yup, that's exactly what I meant. XRP is much much better in a portfolio than exchange IOUs. Exchange IOUs are worth face value in the best-case scenario, so there is no upside risk. But there is much downside in holding IOUs of any particular gateway due to seizure, delays, regulation changes, etc..
So you're saying that Ripple is bad except for XRP. The thing is, XRP is worse in all aspects versus Bitcoin.
Future of cryptocurrencies, right.
On ripple, exchange IOUs are publicly tracked (gateway capitalization is public knowledge, its a negative balance right there in the ledger). Exchange IOUs are also transferable, so you don't need an account at the exchange to hold them, just a trust line on your ripple wallet. These two facts make ripple gateways more awesome than conventional bitcoin exchanges.
XRP has decentralized exchange, bitcoin does not (just a bunch of proposals). XRP has a sustainable giveaway scheme, bitcoin does not. XRP has a reputation, business model, and corporate backing more favorable to pointy-haired bosses, bitcoin does not.
It is a trade-off, of course, there are other aspects where bitcoin is better (first to market and established brand recognition, non-profit backing, algorithmic distribution, etc.). The point is that they are complementary and, in general, what's good for either is good for both.
Frankly, I thought there would be more price movement on the open source and zip-zap news. So it goes....
