I agree with you.
The capability added by crypto doesn’t mean everything else can’t exist or isn’t preferable a lot of the time for most people.
I do think there’s a lot of room for the current tooling to continue to improve though which may make it more of an option for more people.
I think this will forever be the sticking point for crypto for a lot of potential users. It boils down to trust. And the relevant question is: for an average person, do they trust FDIC insurance more than they trust their own ability to understand the crypto infrastructure and protect themselves from rogue or compromised transaction facilitators (because for Bitcoin at least, it's fundamentally impractical to transact for most things without a facilitator; the time it takes for the transaction to get buried into the chain alone is enough to take most day-to-day uses off the table).
And personally, I think for most people the risk model is that trusting FDIC insurance is a superior option.