This is one of the reasons to embrace crypto - having an intermediary with direct control over your finances is absurd.
For all the theory about the being financially independent of intermediaries, in practice it is nigh on impossible for most folks living in the real economy. Meaning that for most of them, even the crypto-knowledgeable, "embracing crypto" means a compromise with the "absurd" as you put it.
Nothing is stopping you from keeping fiat under your mattress.
This isn't really a crypto issue.
We need societies, and we need to work to fix their flaws. Every person cannot be an island.