Yeah, it will be great when the average person loses their private key(s) and then has no recourse to get their money back.

Let's say they have a 3rd party managing their keys so they don't lose them, well congratulations you just reinvented banking but in a way that inherently destroys the environment.

Crypto isn't as vulnerable to this, but it's just as vulnerable. POS Apps could blacklist your address and not accept payments from you just as easily and trace funds that leave that wallet and blacklist them; all in the name of fraud prevention.