I'm with you on this one -- fractional reserve is a tool that affords certain things, and you pay for those affordances w/ certain failure modes. If you make a drastic change to some underlying aspect of how it works, you should expect different outcomes to ensue.

Given the (what seems to me) genuine utility in institutions that do a good job in assessing something akin to credit-worthiness, deploying capital, etc., I can see an explosion of new types of fractional-reserve constructs and institutions made possible because of btc.