You're going to use escrow for all of your transactions? There is no way the general public is going to do that. I think even those who are more paranoid would give up the attempt after using escrow to do transactions after a few months and just use regular money. Or more likely, just stop using escrow and use bitcoins anyway, and then complain when they get stolen.

You're using escrow already when you use a bank account, CC processor, paypal, google wallet etc.

You don't really get a choice, and you carry the mandatory cost because merchants roll the cost of chargeback fraud, CC fees and banking fees over into your purchase price, no matter if you think you'll need the added service or not.

Why not? People use credit cards now.

I think Bitcoin can be serve as a money transport protocol and Escrow services can be built on top of it. Think about buiding HTTPS on top of HTTP protocol.

There different ways to implement escrow with bitcoin.

1) You could ignore all technicalities and simply send the coins to a third party which releases it back to you or forward to the merchant. That's probably the least recommendable way, but is the easiest to explain.

2) A smarter way to do it is to use bitcoins transaction script that can process multi signature transactions, which can work in a way that if A wants to send B money, he can setup an address that can only withdraw coins from if C also signs the transaction. This method is supported by Electrum and by the Blockchain.info wallet.