Using banks is way too convenient for people to abandon them. It's like boycotting cars or the Internet or smartphones at this point. And there's really no alternative to them now, not even our beloved crypto, because of fees, transaction times, price volatility, lack of merchant support, weakness to malware and so on. So I can totally see how people who boycott the banks today will return to them in a few weeks once this all blows over.
You are absolutely right, the system is set up in such a way that most people depend on it to such an extent that they have to obey it completely if they want to survive. If you do a legal job then you have to have a bank account to be able to receive a salary, and even if you receive a salary in Bitcoin you have to find a way to convert it to fiat so you can pay the bills and buy food.
If he uses the military it's going to be a bloodbath because such actions never end with a few bruises.
This is the last option, but if nothing else, the authorities will have no choice but to destroy the protests by force. The only reason they don't do this is that in that case, they know they are losing in the next election, but also because they know that the strength of the protesters is in the numbers and that they are determined in what they do. As far as I can see from the Canadian and US media, they are now trying to influence the protesters in the media by showing data that says that most Canadians are against the protesters.