From my perspective it looks like coinbase is currently the most secure and redundant way to store your bitcoins. Of course everyone could store them on their own and design my own security system, but I doubt many people can do better than what the OP describes.
o What happens if one or more employees goes rogue?
o What happens if an employee is "hit by a truck"?
o What happens if an employee is blackmailed/extorted?
o What happens if your offsite archive is vandalized/broken
into/crashed into by a plane?
For physical transactions, we have chip-and-pin, which can't be copied like a magstripe. For online transactions, we have securecode/verified by visa.
IIRC there was one problem where the encryption used between the card and the bank was bad or the card's chip still had its write pins exposed but I think that was solved by replacing the cards with newer ones.
"After you activate Verified by Visa, your card will be recognized when you buy at participating online stores. You'll enter your password in the Verified by Visa window, your identity will be verified, and the transaction will be completed. In stores that are not yet participating in Verified by Visa, your Visa card will continue to work as usual."
basically, everyone still has the power to charge me, when it knows my card number. The feature seems to be protecting merchants, not customers (yes, I understand that my bank will likely refund all stolen funds, but I would prefer a sane solution)