Cryptos were about financial freedom and trustless transactions (no need to trust a third party like a Bank in order to make a tx).
PoW classic cryptos do that...
The Defi company-based PoS chains do exactly the opposite. Due to the aforementioned, the founders have so much power and have centralized and hyper-inflated everything in one network so
  - The users in the end have to face a congested network with crazy fees (like ETH) and
 - the users have to trust the Solana or Luna or Cosmos or any other company that is behind the network with everything being dependent on its infrastructure (since there is no decentralized network run by each user with the mining process) and the company can either plan a rug pull or shut down the network anytime because of some issues like they have already done in the past.

So how we ended up with more than 20000 assets calling themselves "cryptocurrencies" but actually doing exactly the opposite from what a cryptocurrency is supposed to originally do?

" If you can't beat them, join them "
This is what the system's puppets did and they did it very well. Because now:
a) almost nobody knows what cryptocurrency is. Most people think that it is a scam or inflationary meme tokens.

b) they have the perfect reason for... regulations

c) they divided the crypto community in many and most importantly completely different (quality-wise) teams. (edited)