To some, traditional ownership is just a hoax that they make us believe in. In a way, we're just renters....Because for whatever reasons that the system finds us wanting, it can take away all that we own despite it being ours.
I agree that ownership is an illusion -- a comforting temporary mental and social construct. I think I disagree that blockchain is any kind of "ultimate" ownership, though, simply because it is both dependent on the infrastructure of the web (someone owns the servers, the fiber cable, the electric generators, etc, on which we rely, and therefore while they might not be able to take ownership they can remove our access to our property, which is functionally the same.

And if they are accessible with a key, then that key itself becomes a thing of value that can be taken away or stolen.

I'm not dissing the concept of web3 at all! I agree with you, taking things out of the current system is a great idea. But we are simply trading one system for another, with different hazards and the same common factor: there are humans involved.