It's foolish to think that crypto couldn't make a better and even more stable coin than fiat while still allowing users to make massive gains. DEFI has already shown us how this is possible by offering yields. That being said, yes, stable-coins pegged to dollars in a bank are absolute shit and the opposite of what we should be striving for. It's an awkward transition period. Fiat still has something to offer. Not for long though.
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Stablecoins are the hot girl pin up these days, it's basically the eurodollar system but for retail so I get the reason and the demand for it, and that all stablecoins have their own issues be it backed or algo, but I think people are so focused on trying to make an old medium of exchange work for more than what it is, its a point of sale settlement medium. You spend stablecoins you don't invest with it, you secure positions in it, in the end, its subject to the underlying inflation it represents so it's not worth investing in the "stability" comes at a cost, of purchasing power losses.
I've yet to be convinced of DEFI, liquidity pools make sense, but flash loans just so you can trade up or lock into another pool constantly rehypothecation is just CDOs and CDS markets on a blockchain
For me its all just a need to find a unit of measurement that can be trusted, which I think will be the satoshi, its' been my stablecoin and I don't need to worry about 3rd party issues or a peg breaking 1 sat is 1 sat.