Bitcoin can be said to have lost its edge of neutrality if it totally forgives the original base protocol layer and that's why we see Bitcoin today as more of a hybrid alternative
You made a perfect distinction between the base layer and the institutional layer. This hybrid reality is exactly what challenges the crypto community today. As long as the base protocol stays decentralized and open to anyone without KYC, Bitcoin keeps its core neutrality.
The main issue appears when users begin to confuse these two layers. New users often think that centralized platforms, strict KYC policies, and corporate rules are what Bitcoin is. They forget that these big players are just building a centralized corporate shell on top of a totally free network.
If we allow centralized exchanges, institutional funds, and big platforms to dictate what is legal or illegal on the network, we are slowly building a new version of the old banking system. We must protect the pure base layer and remember that Bitcoin is for everyone, good or bad. Neutrality means the protocol does not judge the user. Thanks for adding this great analytical point to the thread!