The problem is, people don't see BTC as a virtual currency anymore, they see it as an "investment".

Which is why other cybercurrencies will probably ultimately end up being more valuable.

Dogecoin, anyone?

I don't think it's the underlying currency that's the problem, I think it's the middlemen websites that arbitrage for the stupid people who are in it for the investment and don't understand the technology nor the limitations. 

I agree, but it feels like for Bitcoin there are new middlemen websites that launch every day.