Yes I use bitcoin. Mostly I accept it as payment for services and save it, hoping someday it will be both a common currency and have appreciated quite a bit in value.
When I purchase items, I rarely use it. Most places I shop do not accept it, and those that do tend to accept it through a third party rather than directly (e.g. bitpay)
For me, the whole point is to cut out the payment processors, not create a new market for payment processors. If I am going to be using a payment processor anyway, may as well use a credit card and get bank protection against fraudulent sellers.