> you cannot build scaling technology that inherits the self-custodial, permissionless, and censorship resistance qualities of the underlying ledger

Correct, and yet you seem to still miss the point. There are tradeoffs. You can't scale AND maintain those properties. This is why Bitcoin scales with layer 2 solutions like Lightning (and more ideas like Enigma, Ark, Cashu etc.), or things like RGB or Taro for expressiveness. Separation of concerns.

The best attempts to have their cake and eat it too have failed in crypto.

There is very little innovation to be had in the core function of what a blockchain was designed to achieve. There's plenty of innovation ahead of us for the layers that are built on top of it.