Yeah, it is an alternative for a stablecoin. There it provides additional benefits (upside potential, higher APY)
The bottleneck can be solved by launching $SURGE cross chain (sol / cosmos / avax/ dot) as there is more money there plus the difference compared to yield on stablecoin is also way bigger (as I think HBD is already very good).
On H-E one thing that is a big turnoff for me - is the deposit fee - find that a huge barrier to enter large amounts. Furthermore, daily liquidity is very low. (Great user experience though)
Cosmos to me would seem the most logical pick but therefore might not be the smartest (I feel LEO currently looks like a mix of Osmosis dex mixed with dydx yield setup) so we would have established competitors there -or- an audience that know the potential!
Sol , Avax and Dot would imo also make great picks.
TLDR: i agree, but not sure if we have to solve the bottleneck or just find a different route without the bottleneck.