>How many legitimate real world services and products currently accept Bitcoins? I understand it is only the Chinese search engine.
The hundreds (thousands now?) of (mostly) small businesses accepting bitcoin for goods and services include gift card vendors. [1]
You can spend your bitcoins on gift cards (a form of virtual currency in itself) which you can use at some of the world's largest retailers, for example Amazon[2] or Walmart [3].
It's a two-step process, but you can use your bitcoins at Amazon or Walmart, today.