Try to explain to your dad about need to register on localbitcoins to exchange bitcoins for fiat... Or even more so about the fact that you need to register on the forum to send money to someone you don't know!
Exchange of cryptocurrency for fiat is convenient for those who understand and know how to use it, in particular, you and me. But it is still far from mass application.
What you are talking about is not a problem of bitcoin, but rather an uncertain situation with bitcoin regulation. Bitcoin as an independent currency should not necessarily be exchanged for fiat, it can be used as it is. So, improvements in user interfaces should encourage users to stay inside the bitcoin network as much as possible, users of bitcoin should be always eager to make transactions in a completely peer-to-peer manner. Even if it comes to fiat on/off ramps. Advanced bitcoin users tend to be self-sovereign, to rely on no one. If they want to convert their bitcoins into fiat, they will rather choose an effective approach in which no bank is participating. I would say, make P2P platforms easier to use for average Joe and we are fine, no regulations are needed.
No, this is a problem with the whole infrastructure... I know what you're talking about, that 1 BTC=1 BTC... But still, in this world so far, everything is measured in fiat currencies, which by the way also exchange among themselves!
I have an example ...
My lonely uncle Arseniy wants to buy a premium account on Pornhub, and from a friend he heard that he can do it more privately with bitcoin, but he doesn't have it! How can he easily buy them?
I am not talking about cryptoanarchists manifestos. I am talking about ordinary users (teachers, cab drivers, salespeople, housewives...) from whom Bitcoin is still very far away...