These private institutions have way too much arbitrary power to decide the fates of others with opaque & inconsistent reasoning-- I see nearly anything providing a check against that power as useful. I'm no longer convinced blockchain tech is a viable answer, but I do think having a variety of non-consolidated payment processors to choose from is a good thing.
Payment processors have also been known to discriminate against perfectly legal businesses for a long list of random things some old jackass in a suit decided were too 'unsavory'.
I think these organizations are wrong to meddle so much rather than being passive facilitators as originally envisioned. They have a right to exclude things which put their assets at risk, as well as a legal obligation to assist law enforcement where appropriate, but beyond that neutrality and privacy should be the rule.
Typically, it's because of fraud, not unsavory-ness. Fraud on the customer's side, not the business'.
The solution to that is not making every transaction put the weight of fraud solely on the customer.