I agree with you on the technical points, but I think this is a tad pessimistic.
Firstly, by the time we have quantum computing we will probably also have quantum cryptography. Quantum cryptography is secure against quantum computers and is also vastly more simple than existing crypto (no complicated algorithms to mess up). So I expect cryptography to improve.
Secondly, while quantum computers won't be useful for everything, they will have amazing applications. The "simulating quantum systems" thing will be hugely useful for studying chemistry. And Grover's algorithm will provide a significant speedup for a whole host of interesting problems, especially in machine learning.