You're right about the taxes, but even after taxes it would still be more than worth your time to exchange for fiat.

Bitcoin is not real money nor legal tender in any country AFAIK, but I don't see how that makes it worthless. You could say the same thing about almost anything that isn't fiat, yet people liquidate non-fiat assets into fiat all the time. I'm not sure how you came to the conclusion that it should all be sent to a dead wallet.

That might be true, but that doesn't matter. In Canada crypto is a barter good, both parties just need to decide fair market value.