In my opinion stable coins don't limit bitcoin in any way and the fact is bitcoin is widely used in P2P transactions as much as USDT, USDC and other stable coins out there. Throughout my range of payments I've made online I've literally seen no case where a payment portal accept stables and not bitcoin at all.
I believe the main goal of stables is actually to escape dynamic rates since there are cases where you can't afford fluctuations in price with respect to the dollar.
I don't see stablecoins as the endgame, more like a stepping stone. If Bitcoin evolves to become less volatile through wider adoption, better payment layers, etc. it could naturally reclaim its role as an everyday medium of exchange. But for now stablecoins are filling a practical gap and maybe even helping Bitcoin by keeping people in the crypto ecosystem. I think both can coexist for the time being each serving different purposes. One is revolutionary the other is transitional.