This is because "peer-to-peer digital cash" is incompatible with features that consumers definitely want, such as, reversibility, legal protection and customer support.
Most crypto holders just want digital cash...not another paypal. We already have paypal. I don't want "customer support" when I put my cash down...neither reversibility or "legal protection(whatever that means). There are legal agreements that can be set for different types of transaction but I definitely don't want paypal, visa or some random bank to decide whether it likes my transaction or not or put it on hold for "my own protection".
Trying to make blanket statements leads to incorrect conclusions...there are a myriad of cases where consumers prefer classes of transactions to be digital-cash like.