Don't understand why you think that they "confused" their own business model?
I don't want to defend Coinbase, only try to look at them like at any other business which aims to be profitable, so the only goal they have in the end is revenue.

At the very beginning, it was one of the few places where you could buy or sell BTC with FIAT using payments like bank wire or credit card to make it easy for everybody. Later they aimed at newcomers to help them buy their first BTC, but today we are 10 years further and the crypto market has changed beyond recognition. We have almost 6000 cryptocurrencies, 400 exchanges, dozens if not hundreds of custodial and non-custodial wallets, ATM's, OTC, P2P, swaps and many other ways to buy, sell, exchange, take a loan, give a loan, and do hundreds of other things with our BTC while using many different payment options available.

In my opinion, if they did not go with time, but stayed only as a place to buy and sell BTC exchange and didn't add the exchange, all new cryptocurrencies, officially became a wallet (although they were treated in such a way anyway), they wouldn't be currently a tycoon on this market. Who knows if they would still exist?

One could argue now whether they really need BSV, XRP, or any other shitcoins and as Bitcoin supporters, we may not like it, but in the end, Coinbase is just another business that is fully profit-oriented.