To be useful the protocol is going to have to be developed further, its not static.
You just described one reason bitcoin is not money. Fungibility is a requirement of money. Fungibility doesn't just mean the ability to mix outputs so you can't be tracked like Monero, it means the object in reference can't just randomly transform from an elephant to a flamingo. "Evolving" is not a positive trait, it's a negative. Money is supposed to be boring and predictable, NOT evolve into some other weird shit at random. And who controls the course of said evolution? That would be the power vacuum known as mining that's designed to centralize into either a cartel or full blown, one entity monopoly. So bitcoin is more like a centrally administered authoritarian govt rather than "money" or "decentralized".