> "How is the non-tech user ever going to be able to use this with anywhere near level of trust/safety they do with current traditional currencies."
Insurance.
Insurance.
Insurance works on risk profiles. Insurance also works by limiting exactly what situations they do and do not cover (see: All the people who 'thought' they had flood insurance over the years).
Something tells me insurance is going to be a lot more expensive for BTC, which can have a range of impacts that will make it unpalatable for the average consumer, if they or online services can even get (try insuring a Audi R8 under an 18 year old's name...)
Either case, I don't think 'Insurance' is going to be the magic thing that will make BTC as viable as traditional currencies.
Actuaries happen to be quite good an quantifying risk. If the price is right, someone will be willing to insure it. An insurer with a specialist background in systems and security could do well.
The actual problem is the implications of underwriting a fiat currency with a "real" currency.