Now that we've moved the goal posts, is it still more of an environmental cost than just imagining it was fossil fuels or energy that being pulled away from other use cases?

The answer to your question depends on which power source we are referring to. Where Bitcoin is a sustainability solution, it is reducing waste by products which were already being produced and now are not being produced because they are used for energy.

Bitcoin is a multi-billion industry whether you respect its existence or not, your arguments will simply have to get more nuanced to have a real conversation about what's happening.

Organizations that know better are intentionally omitting the source of energy, in their discussion about the amount of energy. Don't fall for it.