Well, given that merchant adoption is going into reverse and the remmittance companies are switching to alts (Bitshares, Dash) and the dark markets are switching to Monero, he's not wrong that Bitcoin has failed as a currency.
Whether some other cryptocurrency will fill the gap of being actually used, is a whole other matter.
So your basic point is that all cryptocurrencies have failed as currencies. But you're assuming that Microsoft quitting Bitpay (then quickly reversing that decision) or Steam doing the same means every business has quit. That's 2 businesses, so not quite all of them.
Furthermore, can you explain the continuing high rates of Bitcoin transactions? If we take a look at
https://coinmap.org, the number of small businesses accepting Bitcoin simply carries on growing. It seems that Bitcoin's use in business is following it's peer-to-peer roots instead of conforming to the corporate business culture which some believe is the only culture that exists.