People want simplicity, people want convenience. People don't want to risk losing their life savings because they get scammed or because their secret keys become compromised or destroyed.

People want banks, or at least a subset of what banks do. People want insurance, people want chargeback. People want to get loans to buy houses and cars.

Bitcoin solves a tiny portion of the service provided by banks.

A lot of what bank does is getting automated anyway, now you have banks that are only available online who probably need a lot less personnel and obviously fewer buildings. Armored vehicles and printing money can be replaced by credit and debit cards, no blockchain needed. I personally use cash less and less, and I know it's a trend in many (albeit not all) countries.

Simpler and more convenient than Visa? What if I buy something online and the other party scams me by not delivering the goods?

There's more to the economy as a distributed ledger. If bitcoin was to replace fiat entirely it'd still need 3rd parties to settle disputes, provide insurance, distribute the risks etc... In other word banks, or "central storage with insurance" as you prefer to call them.

The cost of the PoW algorithm is on top of all of that, not an alternative to it. It's not the problem it's solving.

PoW is there to solve the "distributed ledger without trust" issue. Except that if you end up having to trust your bitcoins to a "central storage with insurance" anyway I'm not sure I see the added value over the current solution.

There's nothing special about blockchains that will mean people suddenly won't use physical money, have a bank on their high street etc.