I would argue that this movement is even detrimental to crypto adoption because crypto's biggest selling point to the masses is that it's digital, and most of them couldn't care less about what goes on behind the scenes. They'll be able to send money to friends, family, merchants (which is all most people really care about) just as easily as they can with crypto. It's going to be harder to stand out.
bitcoin's biggest selling point IMO is that it's programmable money and its supply/scarcity is predictable. the truth is that most people don't (and never did) care about the economics underlying their money. they use dollars (whether cash or checks or venmo transfers) because everyone else does.
but there may come a time when bail-ins and bail-outs or outright currency collapses vividly illustrate to people the importance of distinguishing between unbacked dollars and hard money like bitcoin or gold. hedging against those possibilities will become increasingly important in the future, and that alone may keep bitcoin at the forefront of public observation even if fiat money keeps sustaining throughout this transition to digital money.