There are plenty of options in bank settlement protocols. I think the point under discussion is not banking improvement but bankless user sovereignty via technical means.

The smart contract writers sometimes fool themselves when working on the problem full time.. That's a bigger problem if the code is the contract instead of code attempts to honor the contract and a system with judgement can undo things that obviously fall bellow our ethical expectations like account ID swaps, supply chain attacks, kidnapping/intimidation and so on.