As a customer, I'm OK with banks and similar centralized institutions to handle small payments. I can take risk of losing $100 if I'm banned. As a seller, on the other hand, I don't like any notion of centralized institution, because my account will have much more money and block will be painful. But, I guess, I won't have much choice.

Now Bitcoin has much more value for me, as a tool to store money and transfer big payments. There's no easy way to transfer few thousand bucks between countries without dealing with state agencies, there's huge risk of frozen account, there's huge risk of being robbed, etc. Storing money is the same: your house could be robbed, your bank could default. Bitcoin solving those problems perfectly, aside from its fluctuating price, of course, but that couldn't be solved with algorithms anyway.