This is the ideal, yes. For must of us, compromises will have to be made though - boycotting fiat merchants and closing bank accounts are not viable options in many places right now, and not paying taxes at all will have dire consequences. It's especially difficult without a strong local bitcoin community, which is indeed lacking in most parts of the world currently. I foresee a future where "bitcoin monasteries" become normal - as the fiat world crumbles, individual citadels will merge and create powerful synergies. However, this is still a long ways off.