You mostly listed negatives for the merchant.

chargebacks are incredible for the consumer. That extra 3% is covered by the merchant (maybe it's baked into the price but cash discounts are uncommon), any points at all is free money, and many cards have plenty of other perks.

People aren't fooled, they're stuck in the game because life is 2+% more expensive and overall worse as a consumer using cash or bitcoin in 2024.