To quote a good friend of mine, "because it doesn't have the backing [I kid you not] of government if it fails: no FSCS protection, etc...".
Or, variously, "I trust the government"
Madness.
I don't trust the government. In most cases, I hate the government. However, I do trust them slightly more than some stranger (like Mark Karpeles), halfway around the world, holding my personal information (even drivers license, credit card or debit card info), running a business that may or may not be around tomorrow.


Very true; assume that if you don't hold the private keys to unspent outputs, they're not yours. I wouldn't give debit or credit card info anyway, but these things are all a question of due diligence.
Those who are better at it, just as with every day life, get more out of bitcoin

Those who aren't... buy cloud hashes...