Why not credit cards accepting bitcoin? like coinkit

can't this be worked around by third party applications ? for example multibit.

Also services like bitpay etc seem to provide quick integration for merchants, without them having to worry about the size of the blockchain.

Bitcoin cannot replace the credit card today, simply because of it's 10 minute transaction time. Impractical in real world situations especially since it takes a few seconds(1-3) for you to be able to transfer money on a credit card, unlike Bitcoins 10-40minute wait...

May ripple/XRP. But who's gonna refund me if a fraudulent charges occur on my card.

"Electrum is an easy to use Bitcoin client ... There is no waiting time when you start the client, because it does not download the Bitcoin blockchain."

For example... though if you want to be paranoid or truer to the zero trust principle you should use a client that downloads and checks every single transaction.

Call of duty with all the extra's is 35GB, are you saying that infinity wards should not release another game because of the disk space used.

are you saying no one will play call of duty ghosts 2??

if people can install GTA, crisis, WOW and call of duty and not care, .... then i do not see a problem

1TB Hard drives is 66 times the storage needed for 5 years of bitcoin blocks. and it costs under $£70

The solution is to have hardware wallets (yes they are needed to go mainstream anyways) that can have multiple currencies on them. Then you can use high value btc for buying a car and something like ltc or doge, to buy a frappucino

when doge blockchain becomes too big, no problem, you switch to catcoin or whatever.

BTC = store of value, large transactions
XYZ = fast micropayments, only buy as needed, can be sacrificed painlessly

This solves the issue for end users, but exchanges, processors, miners, and power users will always need the blockchain.

The blockchain is already highly optimized.  Compression only is effective when there are patterns in the data, or data that is not important for the end result that can either be summarized or discarded.  I doubt there is much information in the blockchain that fits into either of those categories.