Anyone starting an argument with "we need to compete with X" where X is some shitcoin can be safely ignored.
Whether we have to compete with shitcoins depends on your goals for Bitcoin, whether you want NGU, and whether you are a maximalist of any definition. All monies do compete, after all. Typically, the actual scam is engineers portraying complexity as a scaling solution, which happens to all blockchains, including Bitcoin.
we need to compete with fiat!