Does Bitcoin actually deliver financial sovereignty if the exit is still controlled?

The whole point of Bitcoin was to step outside the traditional financial system. Permissionless, censorship resistant, no middlemen. That holds up well on the transaction side.

But the exit tells a different story. The moment you need real spendable cash the same gatekeepers show up bank approvals, identity verification, withdrawal limits, accounts frozen for moving your own money. The freedom promised on the way in disappears completely on the way out.

Physical cash keeps coming up as the only endpoint that actually closes the loop.

Does that actually complete the sovereignty argument or does the delivery address just become the new weak point? Where does the community stand on this?