Banks and crypto can coexist, even in a hyperbitcoinized world. Honest banking can be a net positive, and just because the option to opt-out of using a bank exists with bitcoin or some other crypto doesn't mean that everyone will shun banks entirely.
There'll always be self-sovereign individuals who reject third parties, but billions of people rely on them. Bitcoin and crypto can foster a world with more honest third parties. More honest banks that keep money safe and provide credit are better than fewer honest banks.
This highlights the need to break up or skirt the banking system.A critical institution in a country can bring an industry to its knees with the threat of regulation.
This is currently happening in the United States.
The government is making an implicit promise of future regulation if banks don't comply with servicing crypto companies. The meaning of "shape up" is unclear.