It might be valuable for a minority of people, but it is an active detriment for most. I want to know where my money is going, and I want my bank to be able to get it back in case of theft or fraud.
"Can I buy some milk today? No!, let's visit our branch first and give some papers which will require significant time/effort to get for you."
Most just not experiencing things like this but once that happen it is hard to ignore this possibility.