What are these other assets? Atomic swapping between on-chain and LN bitcoin is very cool but the idea of the bitcoin blockchain getting flooded with a load of ERC-20 like rugpull shitcoin tokens doesn't sound great.

Stablecoin would be cool though as long as it's over-collateralised and reasonably decentralised like DAI. If we have USDC type stablecoins that's just tradfi by proxy.