How does that not make it a layer 3
Do you consider coinbase, kraken, bank btc balances a layer 3 bitcoin?
Yes. A layer is an abstraction. Not all abstractions are created equal. Considering something a layer isn't an endorsement. E.g. cashu is amazing, Coinbase is a cancer.
Bro just said "Coinbase is a layer 3 for bitcoin"
Bro doesn't know what a layer is
What is your definition of a Bitcoin layer?
I think the proper logical framework for layers isn't a Bitcoin specific thing, but rather just a property of complex systems in general. Fiat has layers, (some) shitcoins have layers, Bitcoin has layers, the internet has layers, etc. A layer is anything that abstracts some lower level construct. Are Bitcoin IOUs on exchanges an abstraction? Yes. A shitty one, sure. But still a layer.