I hate to be "that guy", but this is why I hate banks and like crypto. Both the fact that crypto is obviously trivial to automate, and that banks can unilaterally ban you and steal your money.
I don't see how that's the same problem? They are clearly separate, distinct problems.
There are obviously both advantages and disadvantages to both crypto and banking. As someone who lives in a country that has been through a lot of bullshit, I highly value the fact that the bank can't just take away my money.
The only difference is that crypto fraud is irreversible, and that the blame will be put on you.
Fraud is huge industry, the fraud models and attack vectors in the fiat world is different than in the crypto world. In the end wherever there is enough money, there will be fraud as well.
If you don't trust "the system" as a whole then you are right, I can't argue with mistrust.