The uncomfortable truth is that the vast majority of consumers, both in terms of quantity and amount of money owned, would rather have a bank be liable when something goes wrong instead of being liable themselves.

Crypto is very much like gold. When it gets stolen, either due to your account getting hacked, your bank's account getting hacked, you being phished, you buying a phone and actually receiving a brick, or even your employee transferring all the money your company has and fleeing to China, there's no recourse.

That's not how traditional finance works. Most financial transactions are, to some degree, reversible, and many of those that aren't will be refunded by the bank / insurance / government in case of fraud. This is something that most banking customers want.