When the CryptoKitties craze was at its highest, the Ethereum network was still faster and cheaper than Bitcoin. It kept processing transactions (faster than ever, even). You just needed to pay more than usual.

You make some good points, like Solidity being a horrible language. The community needs to discover better metaphors for blockchain-aware programming.

As for the rest, I'm not sure if you really want to discuss what you say, or just to cry aloud. Any serious read into the Parity multisig bug would lead you into protocol upgrade discussions, not into bailout discussions. It turns out that some ether previously thought lost could be mathematically proved to belong to a certain address, so giving an option to retrieve the money would be a net gain. The multisig bug made people look into this. If it can be done, rejecting the change "to make them learn from their mistakes" would be petty.