Keep losing connection.

You might want to rethink the JC Penney thing. The only things lacking on JC's "Checkout Now - Register Later" page is a password and an email preference.

Do you have to register? Technically no. Will you still receive email? Definitely. Will you have to enter all the billing information again if you ever decide to buy another item? Absolutely!

I still can't see the savings to you or the customer unless you're counting on just one sale from each customer.

If you feel so bad about the customer "having to log in", reward their having to pick a password with a 10% coupon on their next purchase. Might create a conversion and maybe even a repeat.