It's not a shitcoin but it has tradeoffs. If Bitcoin is going to go where we all think it is going to go then people will rarely if ever touch layer 1.

Although it would be great if layer 2s could have the level of security, decentralization and censorship resistance that layer 1 has, it is not going to happen so we have to accept that a portion of our stacks will have some counterparty, centralization, censorship etc risk.