Yes, and all those advantages only apply when you are using Bitcoin in a self-custodial manner and transacting without permission (BLACK MARKETS by definition)

If a custodian has my Bitcoin and is issuing me Bitcoin IOUs they can still inflate supply for those users (fractional reserve).

If I'm making white market transactions I'm following any arbitrary rules the state wants for those transactions. That also applies to bitcoin transactions made on white markets. This is what I meant by saying Bitcoin has no advantage over fiat on white markets. It's slower, more expensive, much less accepted, and allows the general public to see your financial transactions (at least you have privacy from the general public with digital fiat)

"The government's primary source of power, fueling it's ability to be a surveillance state"
Ironically, Bitcoin also enables state surveillance because it is a transparent blockchain. 

 I agree that custodian Bitcoin (or anything really) is not much better than FIAT if they can issue more IOUs than assets they actually have.

I agree that for the time being due to custodians and KYC market places Bitcoin is easier to track due to its transparent block chain, enabling surveillance states.

Self custodial non-KYC Bitcoin is the best overall. At this stage, with few businesses accepting ₿ and most people owning it in KYC custodians, it has large disadvantages.

It's inevitable that people will break free of the custodians and KYC though once it really takes off and we can transact person to person more, but I acknowledge that until that time it's not much better for privacy than FIAT. Thanks for the friendly discourse! 🙂