You are probably right. But they help the other 1% by using crypto.
But it still doesn't protect the other 1%. An oppresive regime that can steal their money or other physical assets, can also beat, pressure them until they hand over access to their crypto wallet.
There are always edge cases, where nothing helps. Fortunately, most countries are not like North Korea and you have some freedom, often enough to use crypto.
I get the feeling that 99% of blockchain users/proponents aren't in that circumstance.