Institutional adoption, good or bad for btc long-term?

The reason I ask this question is because I met a guy on this forum under one of my threads cussing and cursing about bitcoin now been in the hand of a lot of institution and government and how btc is going to zero later and will die-off, I read all he highlighted and it sounds interesting, so it led me to asking this question here again. Well even though I feel the guy was a little bit over the board in his opinion, I also sat down and thought about it really; what are the implications of institution and government adoption and is this gonna be good for btc in the long-run even though all seems very well and good now.

Here's my thought for now:

Looking at things on the plus side: more institutions entering the space means greater legitimacy, deeper liquidity, and smoother infrastructure. Spot Bitcoin ETFs, corporate treasuries holding BTC, and clearer regulation all make it simpler and safer for big money to flow in. Infact I believe this mitigates against volatility and help build a sturdier price floor.

But on the flip side, I feel institutional dominance could also lead to centralization and reduce the decentralization ideals that attract many to crypto. Also, more regulation might squeeze out innovation eventually if it is too restrictive.

I am still brooding over the question but I feel I should drop it here and hear more opinions from other bright minds, please let me know what you think.

Once the ETFs came in, I knew decentralization was more of a dream than a practice.