That's what I've been saying for some time in discussions. Bitcoiners like over-explain Bitcoin's function. Simple: Bitcoin is money; its the backing. All the rest is currency. And currencies can be backed by Bitcoin -- just like you pointed out. Just like Gold, Bitcoin's known inflation rate keeps capitalism in check.

In a Bitcoin standard if a bank gives out "bitcoin claims" more than what Bitcoin they hold in reserve, this can be seen because Bitcoin is a public ledger

People are too "idiotized" to realize this. Unless they understand the function of money, they won't get to this enlightenment. I go even further and say that most people are completely sold to the State "taking care" of their money. I'm afraid we're on the path to more and more control, my friend.