This is an excellent post, I totally agree with your assessment. A public ledger is necessary in a crypto system so the whole world can be the counterparty. If you have an obscured blockchain and you don't have a trusted counterparty then you have nothing, IMHO.  I think people got confused on the problem that needed fixing. A public blockchain with a highly fungible asset is the way to go, I feel strongly about that.  

P.S. Sorry I did not erase the long post on my reply I am saving it for the future. It is a really great post.