unfortunately, we are in a hybrid situation where governments still have influence. The situation with stablecoins is a prime example. The USG is going to pass legislation that basically makes stablecoin issuers banks, hence they have oversight (control).
Infrastructure is what is needed, outside the existing system. Governments based upon geography will be obsolete at some point.
We are still early, perhaps slowed by the focus upon "price go up" and not as much on development/building.
After all, we see, in a world of AI, Web3 people still feeding Meta, Google, and X with tons of data each day.