Does it mean no coin hosted on the blockchain will gain mass adoption enough to bypass the users of bitcoin?
No it doesn't mean this. Satoshi, like anybody else, cannot predict the future.
The government own billions of population
This is wildly incorrect. A government doesn't own population. The revolutions have shown this.
Of course, in a couple of countries the revolutions went wrong or they are stull due, but that's an exception, not the rule.
You are entirely correct; governments serve their people, not "own" them. In addition, as you pointed out, history has witnessed several revolutions that demonstrate the ability and willingness of the population to overthrow tyrannical administrations. It's important to keep in mind that the consent of the governed bestows power on a government, and that government collapses with the withdrawal of that consent.