I'm worried that ASIC will kill scrypt - it was built specifically to be ASIC resistant so what's it for now?
Kill it from what perspective? The _real_ reason for "mining" is to verify transactions. ASIC scrypt is really good for this because it is very low power, efficient, green.
Coin was not created in order to make money mining. Mining rewards were created to solve the chicken-egg problem of getting people to run verification servers, uh, that is miners to bootstrap BTC.
So, yeah, LTC was naive in trying to make GPU mining easier than ASIC, if they had been smart they would have realized that ASICs would come to scrypt. Or maybe they knew and purposely sought a more efficient process but had to mis-direct the mining community in order to get the miners involved in scrypt.