There are some companies which operate purely in the digital currency world, and never store people's money. They are not regulated businesses. I'm glad these exist (and it sounds like this is what you are looking for) but this is not Coinbase.
Coinbase is an exchange that integrates with the traditional financial system to help people convert their local currency into and out of digital currency. I wrote a post about this here which may help: https://medium.com/the-coinbase-blog/coinbase-is-not-a-walle...
When you say Coinbase tarnishes what Bitcoin stands for, I have to disagree. We are enabling millions of people to get access to digital currency so that it can succeed. We do this successfully by playing by the rules in the existing ecosystem. You may not like these rules, but if you want millions of people to have easy access to digital currency (so that a new economy can develop etc) we are the greatest ally you have on that mission.
One company can't play both roles, of integrating with the existing financial ecosystem, and creating the brave new world that you want to see. That role probably needs to be filled by separate companies.
We are much closer to Stripe and other businesses which don't allow adult businesses either. https://stripe.com/blog/why-some-businesses-arent-allowed
Further reading: https://medium.com/the-coinbase-blog/building-the-bridge-why...