The frictions that a distributed ledger that supports tokenized assets introduces are low-level technical while high-level efficiencies can still be realized. Think of speed limits or traffic lights. The roads still provide efficiencies even with the necessary safety frictions (actually improves overall travel system).

A blockchain is akin to the road system as we know and accept it. Necessary frictions applied in order to reduce overall friction of travel and commute.

It is true, however, that nation states and any government body does not take any one source as proof of ownership and can choose to ignore or invalidate anything they choose to. However, it is better to have the ability to possess the association with a blockchain-backed truth than to have any proof slip away due to administrative error or abuse/corruption leaving people with nothing more than a vocal plea and old printed paperwork.