There are few practical use of blockchain without crypto. Running blockchain requires a decentralized system, which is built from people running their nodes locally, for which they need motivation. I.e. they need to get paid, and as soon as they are paid by some centralized entity the whole point of blockchain is defeated. So, they need to be paid by their users and that basically means that the system runs a cryptocurrency.
There are instances where blockchains are used locally within companies or some smaller controlled groups, but IMO as soon as the blockchain is regulated and not available to everyone, it's pretty much a database run on a centralized local server. When it's available to everyone, it's not regulated and it becomes crypto.
You can prove you are authorized to do something without revealing your identity in many cases. With development of zero-knowledge proofs this is becomming common. And the biggest implementations of this technology is in crypto (e.g. ZCash, Mina). The best utility for what you are talking about right now seems to be Deco, which can prove that resource accessed on a website contained data that satisfied some condition, without revealing the data itself. My point here is that revolutionary technologies like those are being implemented on decentralized systems, as developers find them easier and more accessible. Noone wants to willingly go through bank's bureaucracy to build on their systems. Meanwhile crypto is opensource.
I had a feeling you're going to bash on EUR, but the peak of EUR/USD price at 2008 was not EUR raising, it was USD falling. The recession brought on by bank's negigence was probably a large motivation for Bitcoin that was developed soon thereafter.
Why do you think fiat has intrinsic value? The gold standard was abolished. Honestly intrinsic value is an illusion, gold had intrinsic value because it was rare enough to not cause high inflation and common enough to be put into circulation. Now gold has other uses, but what could you use it for 1000 years ago? Jewelry!
You can control your own finances and it is not illegal. Everything on Bitcoin is public, every transaction's sender and receiver is known. And every transaction made mathematically requires your authorization. This is in contrast with banks that could (if they wanted to, yet they have reasons not to) do whatever they wanted to with your money. This is simply not possible in crypto (with some reasonable publicly known assumptions).
Noone holds a smart contracts, it is owned by the code, run by users and lives on blockchain. DAI is implemented with smart contracts and its rules of operation are publicly known. Voting is not as simple as you make it out to be, it is implemented within a specific set of rules that are logically designed to keep DAI pegged to USD.
It's not only rarity, it's accessibility and a bunch of other things that make something a currency. When something is a reliable currency it has value, because people find it useful to have value.
