Each asset can be looked at in terms of use cases. Bitcoin is the first crypto asset. The currency use case. Etherium is a generalised platform -- computing. Others have been created or are in the works.

For any given use case I believe the solution could be done more efficiently with traditional tech. What traditional tech doesn't do is provide resistance to censorship. Governments can take them down. Currencies, social networks, whatever. The raison d'être of crypto is to provide this resilience. That's what the extra resources go to. Crypto is valuable because it's a more resilience-whatever. E.g., Bitcoin is a more resilient money (Monero is better b/c it's private). Assets which can be taken have less value. Platforms which require permission have less innovation. That's the quick answer.