I know it's a system that hangs together and (locally) makes sense, but I'm still cynical about the mental gymnastics necessary to "properly" explain a system that started with dishonest gold vault operators, pretending they had more than they did. That perspective still applies to modern banks, but what can you do.

The only thing that matters from the depositor's point of view is the probability of being able to redeem a deposit in various scenarios. The reserve ratio is only one component to that.

As an extreme example, what would you prefer: An FDIC-insured account in your name, or handing cash to a guy you found on craigslist who's promising to safely bury it for you in the forest?

Indeed, we have been given convenience and a promise of security, but the way in which we operate is not sustainable for the vast majority of people, over a long enough timeline, imo.

As to what I'd prefer (my not having the slightest clue as to how to operate within it notwithstanding): barter and trade. Yes, I know that a lot of the things we enjoy now wouldn't be easy under such a setup, but as with all things that make life easier, there's always a cost in the end. Bargaining with the devil always seems like a great idea until you read the whole story.