I believe the “trustless” part is not having to trust a central authority that makes the transaction possible, not about not having to trust the person you are transacting with.

With crypto you don’t need to trust the authority that holds your digital money, the authority that executes the transaction, or the authority that manages the issuance of currency and other factors that may affect its value (interest rates, fixed exchange rates…).

That being said, I agree that in practice this is a rather niche problem to solve, and among the people with this problem, there are far more bad faith ones that good faith ones.

And it is never completely trustless anyway, for most crypto you need to trust a single dodgy implementation, the issuance policy of the founders hoarding the vast majority of the tokens, and whatever backdoors they have put in place for disaster recovery or other purposes. And then there are all the surrounding systems that make crypto actually practical to use, like exchanges, that are absolutely not trustless.

It’s absurd how the top exchanges keep their customers crypto in big joint accounts that the exchange controls and transactions mostly just happen in their closed database outside the blockchain, canceling out most advantages of crypto anyway.