Having done different projects both in the public and private blockchain space, I believe the majority of the confusion comes from almost no one actually understanding the point of something like Bitcoin. While it's clear for IT people to look at a Paypal like system and point to the obvious central point of failure (the company behind it, the website "paypal.com', etc), almost no one outside of IT understands decentralization and why someone would want it.

Especially after learning all the downsides you get with these kind of distributed systems (slow finality, low throughput, limited in capabilities, inefficient, open to new attack vectors).