Yep yep. Your points are all valid and true, as far as I can see.

I think it would be interesting of governments started using this tech (Blockchain, smart contracts, etc) to improve existing systems. To me, I can see this tech being used to improve infrastructure in a lot of public services (library cards, driver license registry, etc)

Estonia has been doing that. I bet there is something that other countries can learn about what works and what doesn't