I think, its more like version 0.1 of what's possible. I can foresee the existence of wills on the blockchain. e.g. 'move my coins to my inheritors public key, in 10 years, unless I overwrite this will, with something else'

In fact bitcoin's cousin, Ethereum, is all about digital contracts.

But there could be cases, where people lose their keys or die, without making a will. We can easily foresee, that in this case software could accommodate cases, as exceptions, where identity is otherwise attached to the public key.

Smart contracts may sound cool at first but like many things with bitcoin they are mostly a solution in search of a problem. In the case of wills, the blockchain doesn't address any of the real-world problems typically surrounding them. In most legal cases the problems are not the actual terms or recordation of the contract but in interpreting and executing the contract. Real world events are very rarely dictated by the types of simple binary conditions that can be represented in a smart contract, and the gap between the real world and the blockchain is wide enough to fit a skyscraper through.

I agree with you that there is a wide gap between Bitcoin/Blockchain tech and real world. Won't contest that.

But a will contract can be put on the blockchain, and its a step forward, IMHO. Just today I learnt about OverStock's t0[1] trading on the Blockchain using colored coins (which is supposed to bring down the settlement of stocks to T+0 from T+3. Just stating this example as a case of progress enabled (or made possible) by the blockchain.

Likewise, Blockchain will make wills better i.e. enforceable and crisp via a program hence more specific. But as of now, its not a replacement for judiciary definitely. That's why I said its like version 0.1 of what's possible.

[1] https://t0.com/

Edit: The link to t0