After I figured it out, I no longer expect Bitcoin to be recognized by the state, and it doesn't need to be.
But Bitcoin is already legalized as a legal tender in at least two countries (El Salvador and Central African Republic) so it already achieved that (implementation is questionable though).
So I don't think Bitcoin is going to become a fiat currency.
It was never Bitcoin's creator intention anyway, but instead to give us the alternative. If by "becoming fiat currency" mean replacing fiat, Bitcoin has its use even without achieving that (which is imho unrealistic anyway) and majority of bitcoiners are fine with that.
Yes, you're right. It took me a long time to figure it out. I used to be confused. I still don't know enough about bitcoin.