I used to think as you do, the banks ripping everyone off, etc., etc. Then a banking expert ripped into me. He asked me about other banking systems in the world. Did they do this, do that? Etc., etc. Would I rather be a merchant in the U.S. with a card service or a merchant in a 3rd world country taking cash where most of it disappears through worker-theft, etc? The fees are a pain. However, in the U.S. you can still use cash--for now. Anyway, Bitcoin is not regulated in a way that's good for merchants. If it crashed tomorrow, you could be wiped out. For better or worse, the Fed, and other agencies, do try to protect your business (well, not your business, but your large suppliers). Maybe we take too much for granted?

Get rid of merchant fees? My guess is that would end up throwing the baby out with the bathwater. Even if bitcoin transactions were "free", could you tolerate the instability? I'd rather pay my x% and sleep at night.