Well, cryptocurrencies gave freedom to people and they chose the current system, wasn't that freedom working then? Or are those people only free if they act like what's your vision about the correct idea?

Imho if the pegged stablecoins would have existed from the start, people would have used them. So crypto hasn't really "lost it's way", it's just constantly developing to meet the needs of the users. And now those users are going to be governments and banks as well, so things are changing to meet their needs as well.