And what would stop people from redeeming their IOU and then buying real Bitcoin or another cryptocurrency? It's not like the government just stole everyone's gold and didn't compensate them for it. I feel like most people just act like 6102 was an outright theft of money. It like... wasn't though.

Why does it matter if Blackrock controls the Bitcoin vs the government controlling it?
Those are both pretty bad options.
If anything a government takeover of the private sector just wakes people up to the fact that they need to sell their IOU and get the fuck out of that fragile permissioned system.