That's an understandable interpretation. On the one hand, L2s have made the ETH blockchain usable by the masses. On the other hand, it's caused massive redundancy and fractionalizing of liquidity.

I'm happy the L2s are competing and bribing users with their new tokens via airdrops. However, I'm not sure what the end game is. Will there be 2-3 L2s that garner the most users? Will account abstraction make the L2s easier to use for non-crypto users?

I believe, with time, Ethereum can overcome the complexity they are currently in. My opinion is that it still has the best ecosystem with the most liquidity.

The big question is, who can dethrone Ethereum? A lot of people are pushing for Solana, but the Solana chain has gone down multiple times and the market doesn't trust their money in Solana reflected by the low TVL and lack of meaningful DeFi protocols.

I'm not sure what will happen, but it's going to be interesting to watch it unfold.