We absolutely need a strong dollar-based stable coin. The problem is regulations require e-money and other banking licenses if it’s backed one-to-one by dollars in the bank. It’s possible the Reserve people will create a strong alternative, but I think at the moment we’re in no-man’s land: DAI is no longer viable, Reserve isn’t up and running, and the real solutions require licenses. About the only thing that is a candidate today is USDC, which I think will have to change to be compliant with (completely ineffective) regulations, so it’s less viable than people think.
The “best we have” — DAI — reminds me of The Lord of the Flies, where power corrupts, and decentralized power corrupts just as much. It wasn’t designed well from the beginning, and now we will witness its demise.