People have somehow trust issues and also security issues for any decentralization product or service that's why it do not worth that much even today except the use of bitcoin.
That's true, we people saying that we won't like centralized system or services. Only because of centralized functioning the world has got such a big development and decentralization provides some added help that provides the users good comfort in some form. As OP said it's an illusion, because of its virtual presence.
Yes, let us remember how an exploit can throw back the whole network, which back-throw does not really good for a critical service that was running in the network.
Its not that easy to illustrate a comparison between centralized and decentralized software paradigms in a way that anyone with a basic degree would understand it?
I understand your example about the technicals, but among businessmen, it more comes to the question: How will we have more money from this idea? It would be good to see some decentralized business models.
decentralized services actually don't have any cost, take open bazar for example, the cost are near zero, you just download the client and buy stuff that other user sell
The first thought I too came to was the cost-efficiency. Hosting your now-server-services from a decentralized network reduces your server costs much. But won't we still pay for the availability?