Well, my gut feeling is that it is getting further and further away from regular Joe in the street, and it may be eventually just getting concentrated in the hands of the rich classes as a store of value.
TBH, there is a possibility that this might happen in the future. There is a possibility that a huge percentage of the total supply of Bitcoin will go just a handful of rich people around the world.
The problem with some people is that they can't adapt easily to their environment and they aren't interested in learning new things like in this case crypto. For sure you will ask 100 strangers out there and teach them Bitcoin or crypto and some or worst will just ignore you.
To answer the question, Bitcoin hasn't failed at all as a crypto.
Bitcoin has been created so that people can transact with other people without the help of any 3rd party and that is what is happening right now isn't it?? Yes its not 100% but there are some who are accepting it and that is the main objective of Bitcoin. To be used as another way or paying or another way of transacting to other people.