I think its important to note that while these things are largely true (though i'd say that banks have tight control over states [5+ time felonious JPM and friends, constant bailouts, etc]… esp weaker/smaller states…), there are instances today where people trade goods and services with crypto without "cashing out" (esp more so than a decade ago) through centralized exchanges.

A variety of credit/debt based decentralized stablecoins and dexes will take over in the long run from centralized exchanges and bank account onramp. Even centralized exchanges are trying to get exposure to defi protocols now that will eventually obsolete them for traditional functions for all but the tech laggards.