There are plenty of derivatives that don't require an intermediary.
Crypto is building those as well.
Satoshi wanted to build a more fair economic system.
Getting institutions to adopt Bitcoin is a big win even if custodianship requires trust.
By definition a permissionless system must allow it.

As far as the national debt is concerned it's all smoke and mirrors.
It's very unclear how high that can get before the system breaks.
The more valuable the underlying collateral the higher the debt can go.
Debt might be spiraling exponentially but so are gains in technology.

But of course you are right: a lot of people are going to learn some hard lessons.