I agree with you here about UTXOs and the fact that they will (eventually) be out of reach for most. In a hyperbitcoinized future, the average person would get a handful of onchain transactions in their entire life.

I see a big difference between proper layer 2s, layer 3s, ... layer Ns and derivatives though. Hopefully this is just a temporary transitionary phenomenon. Might be on us to make sure it stays that way and doesn't entrench.