So Bitcoin maxis would rather see hundreds of custodial PayPals, that as history has proven over and over again will centralise into a few options at best, than using other cryptocurrencies that are made from the same ingredients as Bitcoin?

In some cases like Monero those other cryptocurrencies have innovated beyond what Bitcoin will ever deliver e.g. base layer privacy or tail emission which ensures chain security even absent a functional and non-cyclical fee market.

Those who are in it for the cypherpunk values will choose the right tools for the job and use BTC as a store of value while using a multitude of noncustodial solutions for their transactions.

There are cypherpunks and there are NGU maxis. We are not the same.