I agree it's a shitty deal, but your fiat in a bank is anyway protected by your state's guarantee. Even if a bank collapses you should be all right -- it's when your state collapses ala Greece that you'll be in tears.
I can't say how it is in the rest of the world, but in the EU, citizens'
savings are only insured up to 100 000, which is, let's say, good for all those who have no more money. This is something we can say is positive about banks, although theory is one thing and practice is quite another. I want to say that on paper some things may look very convenient, but when words need to be put into action problems arise.
We can therefore ask the question of whether it is safer to have 100 000 in a bank or the same amount in a crypto non-custodial wallet? For some people, the risk is certainly too great to decide on the latter - because it is not easy to be your own bank, too many people are still not ready for such responsibility.
