The problem is finding a funding method in which would make the average person want to get involved. While there are many systems that do not allow chargebacks, Paypal was one of the most widely accepted online payment processors for the internet. Mentioning Bitcoins can be exchanged for Paypal is a big plus in luring people in. But when they find out that not only do they need to learn Bitcoin, but they also need to learn how to fund another system (Liberty Reserve, Pecunix, Alertpay, etc) then they start giving up on the proposal.

The private conscientious and Bitcoin enthusiasts will be more than happy to find a new payment method, but the next time Bitcoin is featured in an article and the readers realize the loops they have to jump through, it will turn off the majority.

Something needs to be done, that is obvious. But I don't blame Mt. Gox or others that tried to use CC or Paypal payments. If it wasn't for these funding methods, I don't think we'd see nearly the price escalation that we've seen.

Maybe we should shift the emphasis away from buying the bitcoins.

Here are two ways of getting BTC that don't involve the use of an exchange, and are fairly intuitive for the newcomer:

1. The deal offered by bitcointo.com. Shop at amazon.com through their affiliate link, and claim back 1% of your purchase as bitcoins.

2. Sell something for BTC at biddingpond.com. The website needs some improvement (e.g. the help pages are useless) but the concept is clear enough.

There is also the BTC 0.05 that newcomers can get for free from the bitcoin faucet, and of course you can generate if you don't mind waiting a month or two for some coins (using the stock client on an "ordinary" home PC).

mcjohn: Like I said in the original post, I'm getting another payment processor. That doesn't happen instantly. I do this in my spare time for free so don't get all uppity.
If you have BTC in there that you bought with paypal this paypal issue doesn't even effect you. You have the same 30 day waiting period you had before paypal froze my account.
If you have USD in there you will be able to withdraw it once either paypal unfreezes my account or I get a new payment processor. Or if you are in a super big hurry just buy BTC on there and withdraw it.

Better design >>>>>> showing mutilated bodies on the homepage

Waste of time and money. We need a reputation system of some kind to keep the scammers at bay.

Its not about violence its about people gaming the system when they see a weakness. Lets not forget they started this by taking property that isnt theirs. We just have to come up with a way to make it harder to do so.

In a way it's a good thing that scammers are attacking this early because it's weeding out the weaknesses in the system.

Yes, but this attack didn't highlight a weakness in Bitcoin, it highlights a weakness in the many credit/identity based systems that the markets must trade into.  This is exactly the kind of issues that Bitcoin attempts to solve, and does so quite well within itself.  What we need is local markets, actual people within our own cities that we can go to and trade fiat cash for Bitcoin in person.  When that day comes, then the system is mature.

Every day of not being able to use MtGox to buy new bitcoins is having negative effects

* not being able to grow the BITCOIN economy
* not being able to recruit new BITCOIN USERS
* not being able to buy more BITCOINS (as the price is further rising. Last price is above 10 cents again)