You have a bad habit of thinking these abstract boundaries are really what people deal with and what they use to make decisions. We all know nothing prevents me from accepting other currency and getting off fiat. Merchants aren't accepting fiat because they're afraid of legal action if they refuse, they're accepting it because that's the default and they can use it to pay their expenses. The state has a stranglehold and prevents any exit. So the fact that it's legally required is mostly irrelevant to real people on the ground , they're just using it because that's what everybody's using. So while what you say is certainly true, it isn't really a relevant point. point is, if the default payment system is instead a fractional reserve l2, that's what people will be using and L1 protocol choices are irrelevant. Btw, I made the same point yesterday, using the gold standard at the end of the 19th century as an example. still waiting for your reaction to that one.

Capital gains taxes is big reason people don't use gold,btc or monero and doge for everyday transactions. Adds a lot of unnecessary friction. Once capital gains taxes disappear adoption will intensify.