There's a lot of crypto projects that offers real world products and services but like Suzanne said, only a few of them actually perform well. A lot of people still have difficulty understanding how crypto works so it will take some time to really sink in. Also, a real world project that offers rewards to their token holders would be tagged a security. Not a lot of project wants to go through such hurdles.
A cryptocurrency base project with real world/physical business, will definitely work and we already have some crypto project that does that (UbCoin) but offering physical business doesn't mean the project successful because of the project concepts, innovation, and community support is needed. However, 90% of the project that offers such service barely flourish and i believe it because crypto enthusiast considers crypto more as an asset than a currency.
1 - The reason for this is due to the fact that most people that are just getting involved with the space all think that crypto is a get rich quick scheme. So their own priority is for the price
2 - i wouldn't be quick to blame people who think about and use crypto this way as there's only a tiny percentage of projects with real world applications and price.