I get where you're coming from, and the solution is ease of settlement to self custody. There is work to do with L1 efficiency, L2 scaling, software development, hardware, and general education. All these improvements are driven by people... people with profit incentives. The price is the biggest thing in most of these peoples minds and I view it as a positive feedback loop.
Discussion
Self-custody will be propagandised as a 'danger to democracy'. They will use every trick in the book to convince people their money is safer with them, just like they did with the banks.
I do agree with your point though, it's sort of a double-edge sword. The incentive has to be there, and that will help drive adoption as long as the people working on the technology remain honest. I don't want to pretend like I understand every aspect of the situation.
I'm prepared for the fight, but I'm praying for the party (legal recognition as currency / no cap gains tax).
It should be a hell of a ride! What a time to be alive with you fine people