The fraud protection and insurance can be useful though.
One advantage of credit cards is that you don't have to wait until the dispute has been at least accepted to get your money back, though.
Although we are talking about it being an issue. Which you have already covered.
Problem is, most people don't spend that much time thinking about it. So I suspect "don't get a credit card" or "only use it in emergencies" are generally good advice. Although perhaps we should just be better at teaching house hold type finance
not an argument for or against cards, but they are becoming closer to neutral than a discount.
Regardless of all that, at the individual level, not using a credit card is still irrational. Not quite the tragedy of the commons, but it's pretty close.
The only way out is probably outright regulating the entire thing away, like the EU has successfully done; the market seems too inefficient and consumer behavior too sticky for card-specific surcharges (i.e. "you pay for your own points") alone to solve this.