The 'way Bitcoin is supposed to work' is any manner that anyone might try and succeed in making it work. Due precisely to its permissionless nature.
Almost every post in this thread is a lie nowadays. The only way bitcoin could be "permissionless" or decentralized is if everyone processed their own transactions like email PoW. The fact you are not processing your own transaction means...you are asking permission by default. Technically you're trying to bribe someone to do it, but it's a bribe + asking them permission as well.
Tokens are non-fungible with transaction validators designed to centralize, which is a permissioned ledger where your payments can be blocked for any arbitrary reason by the gatekeepers and their blacklists. The only way to fix bitcoin decentralization would be unprofitable PoW, which is an unworkable solution. Another method would be to somehow make block rewards erratic where bitcoin is essentially a lottery that doesn't return a dependable, fixed amount of income over time that people can build football stadiums full of miners around the reward model.
That solution would probably be skirted around somehow through collusion like how people collude together to make pools and reduce variance already.