And the one “legitimate” use case you list is to use cryptocurrency to bypass US controls on money transfers to monitored countries.
How long do you think that hole will remain open?
Newer tech with better UX does a wonderful job protecting users and is improving at rocket speed. The example I used protects the user from all these scenarios you mentioned.
Also, the US doesn't care about moving USD in and out of most countries (Iran, NK excluded). It's these countries themselves that want that level of control.
How does it protect against hardware failure? How does it protect against sending Coin X to a wallet meant for Coin Y?
Also, the US doesn't care about moving USD in and out of most countries
That's funny. And even if what you said were true, other countries will eventually control what appears to not be controllable today.
As far as the addresses goes, it’s the same thing as sending a wire transfer to the wrong account in a different country. You won’t get it back.
If cryptocurrency enthusiasts had their way, though, the high-risk transaction the GP called out would be required to buy a gallon of milk.
Give them that and Bitcoin will go back to being a niche investment vehicle where 99% of the people don't care about it.