Fractional reserve banking is independent of the currency. You can implement a bitcoin fractional banking system if you have trusted party available (the bank) and as long as you consider bitcoins to be homogeneous. Although it'll be funny (and borderline eco-terrorism) to use bitcoins if there exists a trusted party (like CME for bitcoin futures, bitcoin wallets, bitcoin exchanges, your ISP, your hardware manufacturer).
Limited bitcoins doesn't make it any less vulnerable to being marketed (yes, there is a lot of marketing $ behind it) as a get rich quick scheme. In fact, the growth of fiat value of bitcoin is the biggest reason people see it as an investment vehicle. Bitcoin system might be helpful in countries with oppressive governments and no trustworthy party, but I don't see largest orders of bitcoins coming from North Korea.
Limited bitcoins doesn't make it any less vulnerable to being marketed (yes, there is a lot of marketing $ behind it) as a get rich quick scheme. In fact, the growth of fiat value of bitcoin is the biggest reason people see it as an investment vehicle. Bitcoin system might be helpful in countries with oppressive governments and no trustworthy party, but I don't see largest orders of bitcoins coming from North Korea.