Federation over decentralization makes sense in any context where there is pre-existing trust. Federation is faster, more scalable, more easily upgraded, if something goes wrong it's easier to pause things and make a surgical change to the system. But federations are also easier to subvert, and users more or less end up controlling the maintainers of the system entirely. If you are a group of international banks, that's not a problem. But if you a single human being that expects corporations, banks, and governments to more or less always behave sociopathically, then it doesn't make sense.
Blockchain core infrastructure needs more time. The hype train took off way too early. I think we're looking at 5 to 10 more years of heavy improvements to things like the wallets, custody process, governance models, scripting systems / dapp languages, the cryptography itself, the peer to peer network, cross-chain exchanges, and other big developer and interoperability features, and just general education / common sense about what blockchains can and can't do.
We'll get there. Blockchain technology is absolutely revolutionary, and it's going to change a lot of things about our global infrastructure. But 2018 or even 2020 isn't the year that we see blockchains really start to get traction. There's a lot of groundwork that we still need to put in place.