Every bitcoin wallet is consider as bitcoin bank because that is how every wallet pre designed in the wallet provider software and site. Not only Coinbase there are many mainstream wallets still available in the market.
You can use any one of that to make your own bitcoin wallet account. Still Coinbase is not that much popular than any other crypto wallet. There are many desktop wallet in the market which can support wide range of altcoins as well.
This. One reason many people went into bitcoins is that so they can have full control of their money. A bank basically holds your money hostage. Even government would only insure a small part of it. That's the last thing we want to see happen with bitcoins.
I think simply having a mechanism for more secure loans would be enough. Though I think that would be harder to do with cryptocurrencies.