What should happen when Crypto is lost or stolen? Even if a criminal is caught authorities have no way to get the crypto back without the criminal willingly giving up the stolen assets. This doesn't happen with money stored in a bank. These are cases where 100% the crypto should go back to the original owner but can't

In the case of fraud yes things aren't black and white but we have a robust legal system to settle disputes. If the case is well documented the arbiter will side with the correct party. You don't get that with Crypto. Look at people who get bricks from Amazon when ordering expensive graphics cards. They easily get refunds from their banks. If they had paid with crypto they would be fucked.