By replacing them with the intermediary of cryptocurrency exchanges and the blockchain itself - both of which charge fees on transfers which are often significantly higher than traditional banks. Is this actually a benefit?

Your puny brain can't grasp the 4D chess here... it's just like how those Federal agencies are so bloated, that completely bypassing them will fix everything (hint: follow the money -- who's going to get rich when they replace the "bloated" middleman with their own infrastructure? In the case of crypto, it rhymes with boin-case).