These things have long been solved through consumer protection legislation in the developed part of the world. Despite responsibility for card fraud, including debit cards, being placed banks and payment processors, northern Europe has a healthy consumer banking market. Vendors being required to warranty purchases for up to 5 years also hasn't killed off commerce or smaller and tiny actors. The home content insurances strike a decent balance for accidents. Sure, the total cost might not be that different in aggregate (you pay for consumer protections through versting being slightly more expensive), but at the same time it's difficult to envision cutting out or severely limiting a profit driven middle man overall being more expensive.

> warranty extension, accidental damage coverage

What does that have to do with CC fees? In the EU, you get all of these with any payment method, and in many EU countries credit cards are the least used payment option because there are better alternatives.