It's a tradeoff like anything else. For some people, the risk is worth the benefit. For others it's not. Still more find the risk worth the benefits for a subset of their money, and not for the rest.
All of these "financial systems" can happily coexist, and none of them are completely broken, they just prioritize different things and make different tradeoffs.
Also, bitcoin doesn't require being a lawless land where everyone can do anything all the time. It's like cash, but electronic.
If a thief breaks into your house and steals $10,000 in cash, will the police give you $10,000? If they find the guy and he still has it, sure! But what if he burned it? or spent it? now you are fucked.
It's the same with bitcoin. if they catch the person who did this, the courts can force him to return the money with threat of lots of jail time and more. If he doesn't have it, then the users that had it stolen are fucked.
and now they are caught holding bags
a future which has no real use cases.