I like the concept however I think we can find many cases where it would have a negative outcome for someone on the other side :) Bitcoin shouldn't become a kind of paypal where you can chargeback your money.
But I agree solving this issue would would increase Bitcoins momentum. I wonder how many coins al already lost forever.
I only use paper wallets. Devices can break down. Paper can burn I know :)
RE: Bitcoins, solution for huge problem?