Possible shorter version of events:

People left their money with some guy on the internet.

He promised them he wouldn't steal it.

But then he stole it.

But banks offer better protection for my money than can be afforded in a home settings. Quite the opposite with BitCoins. My TrueCrypt volume with keyfiles that I keep on my person and in a safebox with my BitCoins inside is far superior to... well... ANY internet-connected service.

Out of curiosity, what size do you set your TC volume to, and what size is your wallet.dat? Is the possibility of wallet.dat exceeding the size of backup.tc a problem?

I can't imagine anyone's wallet.dat being that large... Plus you can always create new TC volumes. My wallet is under 200K right now. Alternatively, especially for such a small file, plenty of other per-file encryption schemes would be just as applicable.

it's superior to how even major banks handle digital security too, from what I hear.