The problem is not the capability of the chain but the enthusiasm and willingness of the community to do such a thing. The Ethereum and Alt-coin communities have taken a much more welcoming and open approach towards appreciating what is built on Ethereum. Ethereum also has an application centered approach. For most people, the idea of making an application is much fancier than the protocol level work that Bitcoin community values.
This is why stuff like NFTs and meme-coins is getting traction on Ethereum and not in Bitcoin. Quite simply, to an outside observer or a newbie, Eth space is far more fun than Bitcoin. Hence the proliferation of NFT, Art and so on. Finally, way more resources and communities are available if someone chooses to devote their time and energy to solidity.