It's certainly a way to keep the network secure. At best it's marginally better than POS. At worst, it's a ticking time bomb security budget cliff.
The actual experience of actually selling or buying actual things with crypto is nearly untenable, and doesn't actually free you from all the legal requirements that make payfac hard
Stripechain is going to fix the UX but you're right that it won't fix "reputational risk".