Do these far reaching use-cases matter in practice?

> ... written contracts can have "bugs" just as smart contracts can.

The onus on smart contracts is to come up with use cases where they are superior to written contract, not to find examples where they are equally flawed.

The purpose is to remove the middleman to have an autonomous outcome and by that they have succeeded. However, just as contracts have evolved over time after iterations have been found to have "bugs", I'm sure these will as well.

It does not cut out middlemen it only renames them to "oracle".

Right, but the bugs in written contracts can be negotiated in litigation

Litigation can be an asset or a liability depending on which way it goes for you, of course. Double edged sword for sure.