Given the huge number of people who only transact using exchanges, and the usability improvements of doing so, that may technically be true, but probably isn't too helpful. For most people they are inseparable in practice. Worrying about the trustworthiness of the major bitcoin players is practical.
I suppose that was an original message for Bitcoin, but the current state with various institutions serving in trust-based roles for so many users, Bitcoin doesn't seem to have met that goal.
The users who out of practical concern are considering between trusting Citibank and Bitfinex, will benefit from chosing the one that's regulated.
At this point, I too would not recommend anyone put their life savings into crypto. Especially given the clearly powerful astroturfing campaign against it. But where can you put it? The banks are not trust worthy, they caused the financial crisis. Real estate, I guess. No wait, real estate being corrupt is what got bitcoin started in the first place.
