RE: What's wrong with this picture?
There are some problems with comparing Bitcoin to Ethereum. In general, it is too early in the game to say which is a better cryptocurrency. I argue they are different technologies. In Bitcoin, the currency is the whole thing. In Ethereum, ether is the fuel that provides energy for the Ethereum Virtual Machine (EVM). While they are both technically cryptocurrencies, they serve different functions. Bitcoin is a rock solid crytocurrency devoted solely to that function. On the other hand, Ethereum smart contracts etc. make it possible to use the blockchain technology for many different purposes.
Bitcoin beats Ethereum only as a crytocurrency because it is proven, has not been hacked and does the job well, all things considered. Ethereum beats Bitcoin as a versatile blockchain technology. While it does have a cryptocurrency side to it, Ethereum is competing in so many areas that Bitcoin can't even begin to operate in. PoS is still controversial which casts some doubt on the success of Ethereum as a cryptocurrency, but Ethereum smart contracts are a simple, proven reality.
My take on it is that there is room for all kinds of smartmoney in the future. We have not begun to imagine what the future holds for us in the crypto arena. While Bitcoin and Ethereum may compete for money on some level, they really work hand it hand in the big picture.