> for example adult content that has huge chargeback risk or straight up blocked by other processors

This has the default inverted.

The best place for the traditional payments system is when you're making a large purchase from a questionable seller, and then you're willing to pay extra for the assurance that you can reverse the transaction.

If you're making a small purchase or buying from someone you regularly do business with, why would you want the cost of other customers' chargeback fraud or use of stolen cards to be added to the price you pay?