Many bond investors are prohibited from buying equities and commodities, so no issue with that. Anyone who can own and self custody should, but there is so much capital trapped in the tradfi system that ETF's and bitcoin equities are the best option for many and it is a scaling solution. UTXO's are king but they are not for everyone, especially with transaction fees rising in the future.
Discussion
It's an NGU solution for sure. And NGU is good for adoption (in some ways)... But is it a scaling solution for properly decentralized and properly custodied Bitcoin?
Or does it set up the exact opposite incentives?
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.