Chip and PIN have one major drawback for you though: they shift the liability from the merchant to the consumer. With conventional cards you can contest a purchase and the merchant is out of pocket. With Chip and PIN it's like a debit card and typically you the consumer is out.
Yes, but the card never leaves my hand, and since it's a challenge-response system, you can't skim the data off of it with a fake reader. This means that for someone to buy stuff in my name, they would need to steal my card and peek at my pin-code, and unless I'm a bumbling moron, I will notice if you steal my credit card.
