[CutePuppy]

... there is a need for something like the equivalent to escrow or title insurance (in real estate) that verifies the transaction so that people cannot be defrauded with impunity. Obviously it needs to be real time or very nearly real time as well.

But that's exactly the idea behind the blockchain, which is the heart and soul, sine qua non of Bitcoin. It's often described as "brilliant" yet it has many problems of its own (one of which is that it also serves as a "ball and chain") for escrow/verification of transactions. It doesn't do much against theft or accidental loss.

Financial privacy is an essential component to freedom.
The anonymity of the system makes it hard to have any recourse if you open your account and the money is missing.

But that's the point - essentially, what you want is the "privacy, safety, convenience/freedom" (a little twist on "good, fast and cheap" trilemma™) - pick two of the three!ul

[marron]

"privacy, safety, convenience/freedom"... - pick two of the three!

Good point.