I think it is interesting to see this for other assets as well. Because I (and others) have noticed that OSMO is a major price indicator for a huge lot of assets which are mainly tradeable on Osmosis. When OSMO goes up, the assets go up. When OSMO goes down, the assets go down. So it is a bit tricky to draw this kind of conclusions based on a single-asset basis imo.
In essence you are right. But as @whitemarlin rightfully states we also need access to the right assets via centralized exchanges and other routes. We should and must not forget that the ideal state might not be for everyone the same. Some want crypto, but via centralized routes without having to worry about key management.
Some might want the full deal.
Some might not even want crypto in the end.
In the bigger picture we only get from A to B if enough people join in. If we cling to only the ideal state, then we will always remain a niche. We as crypto-universe must be able to do consessions to what we want to achieve to make it tempting for others to join in. And when we are moving in the right direction, take small steps which bring us closer and closer to the end goal. But that it a way of iterating a lot, not just taking one big leap and assuming everyone will take the same step.