FIRST, NON GOV CYPTO WILL NEVER REPLACE CONVENTIONAL CURRENCIES.
I get your point with all your text, but you seriously need to understand that banks, or governments, or whatever you want it to be.
Bitcoin still needs to improve a lot, and altcoins too.. You can not expect to go to a Starbucks and pay a coffee of $2 with bitcoins, because the fees are already $15.
So no, and the blocksize really needs to get increased too.
Yes, in general I agree with you. Bitcoin and other crypto must improve a lot, even fundamentally in order to fit modern currency system in the real world. And these fundamental changes will greatly change the shape of today bitcoin, as I mentioned above. Mining systems need to be eliminated and open blockchain needs to be limited.