BTC is a digital currency, meme coins haven't taking over anything, it is just a pump and dump tool for trading. BTC is p2p electronic cash and you can spend it because it is fungible and is a medium of exchange. You should provide more details in your post, because the little you did provide does not make much sense and is incorrect.
Ordinals and Runes have taken over the news cycle. They have also congested the network and increased the fees to a level that Bitcoin is no longer a valid currency. When it costs $10 to $30 USD to send and receive Bitcoin in 10 minutes it is no longer an efficient currency. It is cheaper to use almost any other fiat currency or credit vehicle like Visa.
Most people are buying bitcoin through 3rd parties like exchanges and ETFs and if people are using a 3rd party node instead of hosting their own node it is not a peer-to-peer transaction. All of these Bitcoin transactions are benefiting the 3rd party intermediaries and it is equivalent to the system we currently have.
Wall street is attempting to use blockchains like Bitcoin to create securities that financial institutions can easily monetize.
All the while no one is working to make Bitcoin a more suitable peer-to-peer digital cash system. It is getting slower and more expensive.
In addition most people I hear from are okay with the transition of Bitcoin as an investment especially Wall street.
All of these reasons lead to my question: If Bitcoin is not peer-to-peer digital cash then what?