The state requires control of the money to exist, otherwise the Federal government would have no power (see pre. 1789). So hyperbitcoinization takes the underground that's had to hide from the government and allows it to exist where everyone can see it. But it will be the above ground moving towards a free market not Bitcoin moving towards the existing fiat world.
I agree that's the key point. Hyperbitcoinization means the state and world order as it exists today will have to fundamentally change. Not something I expect (or want) to see while I'm alive.
Bitcoin splitting between KYCBTC and noKYCBTC is the current trend and likely the status for many years. Some degree of movement between the 2 pools will likely be possible, esp. at the "pocket money" level.