Fiat can't be oppressive, it's an inanimate object. Just like a gun doesn't draw people to violence, it's just a tool. Also, like others have mentioned, BTC wasn't made to eliminate fiat. It was made to give people a choice. To show them that the way of the government (go to school, get a job, take a loan, buy a house and a car, save for retirement, pay taxes, get social security) isn't the only way.
I do not think so, I feel Fiat can oppress Bitcoin, the first reason is Bitcoin still depend on Fiat (if there is no Fiat then Bitcoin no one invests), the second reason is Bitcoin is still considered as investment tool instead of currency (thus Fiat is still can play Bitcoin users)