I think think the problem is intrinsic. “Good UX” has to include “easy enrollment” and “some central authority can reset my password” and the failure of either means a user loses 100% of the function of the application.

Look at how end-to-end encryption of email has not caught on although it was possible in the late 1990s, the horror of gpg, or how the NSA gave up on nerfing encryption algorithms because people will always screw up key management. (Che Guevara might have lived to lead another revolution if he hadn’t misused his ‘unbreakable’ one-time pads.)

By "ideals of crypto" do you mean the techno-libertarian political ideals? Or the fundamental technical ideas? Crypto has failed to deliver on decentralized, anonymous, frictionless, secure, ubiquitous, cheap, efficient, free from government interference or taxation, etc. Maybe those all stem from poor UI, but I don't think so -- the whole thing at best is a solution looking for a problem, and at worst an outright fraud.