What People Think Privacy/Security Is

Not disagreeing with you, but it's a double edged sword inherent to any privacy-focused system. Tor grants journalists and political dissidents access to the broader world anonymously, but is also used by darknet markets to sell CP and illicit drugs.

Privacy coins like monero allow people to spend money anonymously to purchase VPNs or prepaid phones without state actors knowing, but also enables money launderers to do what they do.

And of course there's the pollution problem you mention with any proof of work cryptocurrency, but at least Monero's is more efficient that Bitcoin.

Again not defending cryptocurrencies or discounting your thoughts just wanted to tack on to it.