I agree with You somewhat and as justusagenstum said, fiat is really a popular support of the promise that the currency holds value and can be exchanged or retain their surplus value to be drawn on later.
Wars, especially modern day wars have a common thread in that the leader or country in question was somehow bucking the established domination of the debtor/fiat models. IE the PetroDollar Fractional reserve banking.
This is not to say that fiat is control nor evil, it has allowed the creation of wealth worldwide that far exceeded the stores of Gold or Silver and other units of value, productivity and economic growth fueled that and fiat was and is the method of payment, exchange and settlement of trade. Most importantly a store of value and basis for building wealth.
Where it has gone wrong is that far too many of our governments, corrupt politicians, and corrupt corporations, have handed over the sovereign currency to corrupt overseers, rather than audit them and provide oversight to insure the integrity of the fiat currency. Yes I am talking about the privately owned central banks, and in the US in particular Congress has shirked their responsibility to oversee the FED. The last hundred years has lead us to the brink, devalued our stores of former wealth, lead to much pain and strife.
It can lead to wars if it all melts down as many predict due to the huge debts.
I am not sure about virtual currency, while I am learning more about it's inner workings and inherent securities, in order for it to truly work, it must be adopted by the masses and accepted as a secure store of their hard earned value and wealth. It remains to be seen where we end up, interesting ride though !
i have a more simplistic view i'd say but i agree, the control though can be manipulate the currency. Also currency like the comment above is more of an I.O.U where as the BTC is at least physical data which has value. So many opinions and angels that critically think about this which is good. It's thought provoking :)