My point is that for something meant to be totally decentralized, bitcoin has become nearly completely centralized instead - virtually every transaction (even that buy-newegg one) has to pass through Mt. Gox, since suppliers have to be paid in dollars, and Mt. Gox is the only place with sufficient volume. I think that's an interesting and non-obvious outcome, and I wish that people would try to do a serious economic analysis of bitcoin, instead of giving us the standard opinions of "it's garbage" or "it's going to take over the world, you'll be poor and I'll be rich".
Even if there are 2 exchanges, or 5, or 10, that doesn't change the basic fact. After all, there are hundreds of central banks, but we don't refer to regular currency as peer-to-peer. My further point, as an aside, is that the shaky nature of the bitcoin exchanges makes this a dangerous investment for anyone who is treating this as more than an experiment. Failure of even one exchange out of several is still very damaging to an economy.
Mt. Gox might be the most popular one, but unless you're going to buy/sell an extremly high amount of Bitcoins, other exchanges are viable too.
Currently I like Bitmarket.eu most: This site acts as an escrow just for the Bitcoin side of the trade - the "real" money is directly transfered between buyer and seller (via bank transfer or Paypal). That's somewhat more distributed than other sites that act as "full gateways" between buyers and sellers.
Numbers are of the essence. That site has less than 1% of the volume of Mt. Gox, and Mt. Gox is considered too thinly traded for business transactions.
I don't see how the existence of that site, and trading over IRC channels, changes the fact that the bitcoin economy has become centered on Mt. Gox, and in the future, maybe, on several other exchanges. I never said that Mt. Gox is ALL there was.
BTW, I see the reasons that a proper exchange is more popular - there are 3 or 4 transactions an hour on bitmarket.eu, the escrow provisions are weak (as you said, it's for the bitcoin side only), the Paypal fees will be high on the small amounts traded, and trading higher amounts will get negative attention from Paypal - they will not let people trade virtual currency over their systems (and they consider bitcoin to be in that category).
Even if there are 2 exchanges, or 5, or 10, that doesn't change the basic fact. After all, there are hundreds of central banks, but we don't refer to regular currency as peer-to-peer. My further point, as an aside, is that the shaky nature of the bitcoin exchanges makes this a dangerous investment for anyone who is treating this as more than an experiment. Failure of even one exchange out of several is still very damaging to an economy.