Ethereum is poorly built from the ground up and needs an update, layer 2 is not a solution, it simply exposes you to more risk, being completely centralized protocols.
Ethereum has become a business.So I think the main problems are the expensive fees and approvals.
I prefer not to talk about staking re-staking either.
I assumed that sharding would allow the high rates to be reduced, but I read that it will only serve the L2 circus, honestly a shame.