Let's take a look at this hand from BB's perspective and analyze his thinking on every street, just as we saw your thought process in your original post.
PokerStars No-Limit Hold'em, $0.10 BB (6 handed)
Poker Stars Converter Tool from
FlopTurnRiver.com (Format: 2+2 Forums)
Hero ($32.75)
UTG ($12.85)
MP ($10)
CO ($9.85)
Button ($26.50)
SB ($7.60)
Preflop: Hero is BB with 2[img]/images/graemlins/heart.gif[/img], 6[img]/images/graemlins/heart.gif[/img].
<font color="#666666">
1 fold</font>, <font color="#CC3333">MP raises to $0.4</font>, <font color="#666666">
3 folds</font>, Hero calls $0.30.
<font color="blue"> lol I have 26 suited - insta-call. </font>
Flop: ($0.85) 9[img]/images/graemlins/diamond.gif[/img], 5[img]/images/graemlins/club.gif[/img], 4[img]/images/graemlins/spade.gif[/img] <font color="#0000FF">(2 players)</font>
Hero checks, <font color="#CC3333">MP bets $0.7</font>, Hero calls $0.70.
<font color="blue">lol I could make a straight with a 3 - call. </font>
Turn: ($2.25) A[img]/images/graemlins/club.gif[/img] <font color="#0000FF">(2 players)</font>
Hero checks, <font color="#CC3333">BB bets $1.8</font>, Hero calls $1.80.
<font color="blue">I can still make a straight on the river lol.</font>
River: ($5.85) 3[img]/images/graemlins/spade.gif[/img] <font color="#0000FF">(2 players)</font>
<font color="#CC3333">Hero bets $29.85 (All-In)</font>, MP considers that Hero's line doesn't make sense because he would want to bet for value if he made a straight and realizes that Hero is using level seven thinking to try and trick MP into folding the best hand.
<font color="blue">lol I made my straight - all-in looooool!</font>
Seriously, take a look at villains stats and realize that the reason he lasted more than one day playing poker was by getting his massive river overbets payed off when he actually hit something after calling the flop and turn against all odds.
A player this bad is not capable of making this bluff out of position. This is always a hand that beats top pair. If this were against a very good player at higher stakes and your image was weak-tight then you might think about calling, but here it's an insta-fold.