Regulation makes sense, as it will allow it to become mainstream. Also a lot more clarification and guidelines needed around taxation with DeFi and related products - government really has to do tremendous catch up.
It's very normal in finance to call financial offerings, lending, loans, etc. products.
Some DeFi products offer nice rewards even - like somewhere around 12% pa for more risky, but about 6% pa for low risk products.
We are far from close to mainstream usage and early adopters probably will benefit the most.
If I go to a bank I can get a loan for a car and use the car I'm purchasing itself as collateral.
Right... so pure speculation then with no underlying utility.