Have governments practically eradicated cryptos main purpose of decentralised banking and just transformed it into basic buying / selling / trading?

I’ll start this by saying I’m not anti crypto. I’m involved in crypto since about 2018 and a significant amount of my assets are in crypto, BUT:

We see all the comments such as ”cold storage / memorise your seed phrase and you can bring your bitcoin anywhere [without government interference]”

Yes that bit is true, you can mind your assets by memorising a few words and then access it anywhere in the world… that’s all well and good. But other than P2P, when you do cross a border (for example someone fleeing a war zone) what exactly can you do with your crypto when you arrive other than find someone you don’t know to P2P?

With AML legislation, KYC legislation, the availability of tracking software etc, the governments have more or less full control over what you do with it. As soon as you go to sell it they can see where you got it, where you stored it, where you bring it etc. The regulations set for exchanges mean that as soon as you send it, if it doesn’t meet the government regulations for that area they will simply freeze it and put it out of reach.

In these cases (again other than p2p), what benefit would someone fleeing Palestine, Ukraine etc with a trezor loaded with 2 bitcoins have when they arrive at their destination? Let’s say the person needs food as soon as they arrive in the US with nothing other than a passport, the clothes on their back and trezor. How is their trezor loaded with bitcoin going to help? They still need an exchange / bank account or ATM in order to transfer the bitcoin into fiat currency.

It has developed massively over the last decade but with that comes even more significant restrictions and regulations. Has this destroyed the true purpose of crypto and transformed it into just another digital stock trading option?