To clarify: Bitcoin is deeply flawed, and I agree with you that Bitcoin is probably worth less than many people speculate it is worth (but not zero).
Cryptocurrencies in general have a lot of utility and solve real problems.
Cryptocurrencies in general have a lot of utility and solve real problems.
There's no reason that a crypto-exchange cannot be as secure as a bank (or more), and that governments cannot insure crypto deposits up to some value. Those are purely problems for regulators/governments, which have been relatively slow to adapt legislation.
The problems you highlight are real, and can be good reasons to favour traditional currencies, but they're also easy problems to solve - the thinking has already been done once for traditional currencies and the solutions for crypto are mostly identical.