With Bitcoin, I don't have to keep my savings in the bank even if I choose to use a bank for other services. As someone whose had their bank account frozen before, this is of great value to me.

I could use banks or Lightning like a checking account, while keeping the majority of my savings under my control.

Yeah but you are most probably using a centralized exchange to execute BC transactions for free which might froze your account as well in the future because $REASON. Also thinking that in the long-run, in a future where BC is accepted almost universally this is not going to be heavily regulated by governments it's being naïve IMO.

Yes. Financial institutions are useful for fiat and non-fiat currencies, in fact they were born long before fiat currency.

The full circle