A few observations on these points from a Bitcoin user:

1. People won't usually buy Bitcoin from Coinbase in order to buy goods on a site like Overstock. Rather, they buy bitcoins from one of many possible sources because they believe in it as an idea or because they hate banks and credit cards. Or, they have invested in Bitcoin when it was cheap and then decided to spend some of their 'found' wealth when the price rises. The inefficiency you talk about doesn't exist because bitcoiners want to use them for reasons other than pure transaction. You seem to mistake Bitcoin as a credit card replacement. It's not.

2. Credit cards and PayPal do offer consumer protections, and that may be a reason for them to remain in business. On the other hand, the shenanigans banks play with people credit cards and credit scores coupled with the risk of identity theft more than counterbalances that advantage. Bitcoin allows me to save, spend or send my money to whomever, wherever, whenever without the assistance, approval or excessive fees of banks.

3. I agree, it would be nice if merchants would pass on the savings from Bitcoin users, and there are plenty that do. To claim that a major bitcoin accepting site does not do so is a strike against Bitcoin is simply missing the point. Some merchants who work on thin margins might find it easier to stay in business if they don't have to pay credit card charges. And remember, they aren't only paying the 3% cut of the sale, they also pay a variety of fees to the payment processors.

4 and 5. (Note that these are actually the same point, so giving them separate numbers seems like and error, or padding.) This point actually made me laugh out loud. The point is that Overstock must force its suppliers to accept Bitcoin. Forcing people or businesses to accept BTC before they are ready for it is a recipe for disaster. It would not benefit the suppliers because they would resent it, and it would not benefit Overstock because they would be accused of being a Bitcoin bully. Those suppliers well may be asking for payment in BTC in a couple years' time when they have figured out the benefit of Bitcoin for themselves. That will create the virtuous cycle that will bring Bitcoin mainstream. On a personal level, I talk to a lot of people about Bitcoin, and I am always careful to tell them that I am not a salesman, and if they are not comfortable with the idea right now, that's fine with me. I think Overstock is doing the same thing and I applaud them for it.

I'm actually really surprised that Mr. Evans recommends that Overstock bully its suppliers. Bullying must seem like a natural, everyday activity to him.

6. This is my own opinion, but it seems to me that Bitcoin is going to go through a number of stages of use, and that widespread merchant acceptance may actually be one of the last stages. Right now, it's in a speculative stage. People are waiting for more of the infrastructure to be built out, for additional features like smart property, smart contracts, and decentralized companies to start kicking in, for more regulatory and tax clarity, etc. More than anything else, they are just watching the momentum of Bitcoin grow and grow. The next big movement for Bitcoin may be when a country on the financial edge goes over and all-of-a-sudden people start pouring their money into Bitcoin to retain value, or it may catch on as way for laborers in foreign countries to send money home to their families, or a business may come online that helps retirees take advantage of the huge growth potential of Bitcoin to save their retirements, or ...

Bitcoin will remain a speculative instrument until it is worth much, much more than its current price. Once it takes off, people who have even a little will start to feel this 'found' wealth and want to take advantage of it. Then we will see merchant adoption.