It seems to me to be much easier to reason about a very limited set of actions than the virtually unlimited ones Ethereum offers.
On the other hand, it's incredibly fast to spec out and deploy one of these contracts, which is pretty amazing to me. Lots of interesting things coming.
Bitcoin also has a mini VM and scripting language (transactions are verified by "concatenating" the script of an output with the script of an input and running it). One big difference is that Bitcoin's scripting language isn't turing complete (e.g. you can't have loops or recursion) and there are other limitations like a per block limit on expensive operations (signature operations to be precise).
Your fear seems to stem from misunderstanding how Ethereum works or what it even is.
Most likely, Ethereum itself (the "engine") will be effectively error-free - probably as good as the Linux kernel - once it reaches 1.0. And smart contracts can be as simple or complex as you like. If you're afraid of bugs, don't put money into any complex smart contracts. If there's a lot of money involved, then spend some money/time reviewing the smart contract.
Also, contracts can set precedent once they are in the ecosystem. If a contract has been heavily used prior to your desire to use it, you can copy it, and be relatively confident that it will be secure for you to use.
"will be effectively error-free" != "probably as good as the Linux kernel", not even close :D
To put it mildly: There will be blood.
the JVM is a bit special because there are a large amount of escape hatches, native code and a complex trust model, which has caused a lot of the exploits you end up seeing.
The other big reason being that it's a giant blob of C and a large attack surface.
All of these factors could be easily avoided or simply don't exist for an Ethereum contract developer.
0. http://falkvinge.net/2013/11/17/nsa-asked-linus-torvalds-to-...
I encounter major glaring issues as well as continual regressions in the linux kernel on weekly basis. I don't even know what you mean by as correct as the linux kernel
I'm sure the Ethereum team does the same but then when it comes to DAPPs and Contracts running on their VMs and potentially trying to compromise the underlying system things are way too fuzzy for now.
Are you aware of the $155M USD people have sent to https://daohub.org using (depending on) Ethereum?
Anyone who did 20 minutes of due diligence would be scratching their head at this.
The Ethereum virtual machine has to be completely error free if any sane person is going to put their money into it. I just don't see that happening.
I do see a lot of glitzy websites using blockchain buzzwords, but there isn't much going on besides fundraising. This should be a concern for anyone speculating on Ethereum.