In a fantastical world yes. Google wallet and NFC require one thing that means they can't be readily adopted as the main method of payment - power, and more specifically, personal power. In the real world, relying on a system that requires such a fragile device to be a) powered up and b) functioning, is a Bad Idea. Notes can be washed, ripped and screwed up and still act as legal tender, a bank card is resilient to most conditions and has 2 levels of redundancy beyond the chip (magstripe and raised lettering - the problem with any major payment method is that it has to have failsafes. Imagine the NE (and specifically NYC) had another blackout - how do people think that would go if all methods of payment had to be powered? Even last time, you could still use cards with the traditional click clunk machines.
Chip and pin (and paywave, a nfc like solution) are great but they require failsafes to work consistently.
Chip-and-PIN as a very broad concept¹ is fine. It's EMV implementation has issues - requirement to trust POS terminal, MITM, legacy magnetic tracks and so on.
¹) When we mean just that there's a card with secured microprocessor holding the keys and some method that card's owner use to authenticate with that microprocessor.
Is it even EMV that has issues? This attack rather assumes a bad RNG. No doubt some hardware with bad RNGs exist, but this would cause problems for any crypto system. It's not like EMV is somehow uniquely vulnerable to bad RNGs when other systems using cryptography aren't.
^ This. Google Wallet uses the same underlying technology as EMV. The only difference is the commands are being sent wirelessly (by NFC) rather than a direct physical connection between EMV chip and terminal.
There's also the Google Wallet Card [1]. Yes, it is still a card with a PIN, but it is tired to a limited access account that can be loaded in seconds from your phone. This provides additional safeguards in that the attacker can only gain access to what you've loaded, but the Google Wallet app will also send a notification to your device when it has a transaction - usually before my card is handed back to me. If the card were ever compromised, such as using it at Target when they were cracked, it is very easy to request a new card and invalidate the old one.
