In my opinion you and all those who have commented before me have left out the most important point: the absolute loss of privacy.
CBDCs emerge not only as an alternative to Bitcoin and crypto, but as an improved version of cash (supposedly). The problem is that with CBDCs governments and central banks are going to know exactly what you spend where your money, and the exact time to spend it.
Cash, as bad as it is in terms of its devaluation, gives you privacy. With some exceptions, like when you buy expensive things that have to be reported, like a second hand car for example. But if you go to the supermarket, the store, the pharmacy etc, and you pay in cash there is no record linking you to that purchase, whereas with CBDCs they are going to know everything.
You're right about that. A full-fledged digital economy patronized by the government will put an end to privacy for good. This will give more power to banks and the government over the mainstream economy. Luckily, crypto will be there to save the day. After all, crypto's decentralized and censorship-resistant design prevents any government from interfering against it. People can still enjoy privacy on crypto regardless of government's actions against it.
One thing for sure is that CBDCs are essentially an upgraded version of Fiat without the physical part. Paper money and plastic cards will become history as CBDCs prove to be superior. Which type of currency (CBDC or crypto) to use will depend on a person's needs. As long as decentralization wins, there should be nothing to fear. Just my thoughts
