I think the true target market for me with bitcoin in the long term would be the cliche phrase "Banking the unbanked". But I really do think this is true. Smart phones now are everywhere and this is basically all you need along with access to the internet to now transfer funds outside of the banking system so I think this is both the most ethical target market and also potentially the most profitable.
Now banking is non banking only because people trust bitcoin more than bank, there are a lot of reasons for it as it is very easy to carry all the time your money with you if you use bitcoin but not fiat money, it is very easy to transfer a lot of bitcoin within few minutes so they found it reliable to use as compare to banking system, I think bitcoin gonna target banking system for fast payment and in future it gonna be only way to settle good marketing.
banks were still stable and legit than bitcoin , therfor many people will always prefer to use and put their hard earned money in banks than in investing on bitcoins. im pretty sure banks woudnt allow bitcoin to partner with their service because they think bitcoin can give them a threat if ever bitcoin becomes popular to the public because bitcoin will become more credible if banks and other big names will partner with it. however this might also affect that price of bitcoin because it will now become less volatile if it is regulated by banks.
Well, everybody have their own preference and in as much as most people are still trying to play safe, they would not want to put in what they cannot risk into bitcoin anyway. I would not be so sure of anything, because with the way cryptocurrency is going and the idea and perception governments are beginning to have about it.
I would not be surprised in the long run if banks find a way to benefit from it. Bitcoin however, cannot be regulated by banks with respect to your last statement, it still remains decentralized and nothing changes that unless the protocol is changed.
Apparently, it is a free world and no one is exempted from the show and some may have their skepticism but we also have to understand that over time, a lot of things can change and that can start turning to some hope for them. I still so much believe that over time, there would be some mass adoption which would help sky rocket the price, but for now, I guess the market is for only those who are willing to take the risk to be a part of the future.