Even if I agreed with all your points (which I don't) why would the US government switch to BTC if that limited what the Fed could do? This is a debilitating flaw of BTC.

I suppose if a vast majority of Americans demanded a switch to BTC it could be done but if that was a real possibility it would be much easier to demand laws to stop the Fed instead of switching to a new currency.

But the government won't switch to BTC and the people will never demand it because a limited currency would hurt the economy by limiting growth.