what are you missing exactly on bitcoin L2 that Eth does offer?

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Bitcoin L2 has like 4 things, none of them offer all the extras in one (native, smart contracts, speed, privacy etc). There is little innovation and little choice. Lightning is pretty good, but still has privacy issues. There's this culture of keeping it pure and a refusal to recognize that Bitcoin wasn't perfect. It's a beautiful idea and world changing tech, but you don't stop with the first iteration of an idea.