I share your viewpoint and frustration with "decentralized" apps. But as you said it is indeed possible by bundling your app with IPFS and using something like orbitdb/ipfslog for structuring data. I linked this in my other comment, but take a look at this proof of concept: https://www.reddit.com/r/musichoarder/comments/lrqx7m/record...
At this point the major challenges are with UX, especially for users who are not accustomed to self-hosting. I think we have the technologies and ideas to overcome the rest.
It's def not ded, it's been like this for as long as I remember but it just keeps slowly chugging along. I continually find myself coming back to it, especially as IPFS matures more.
Incentivization of miners creates a centralization force due to economies of scale effects.
Ironically, nanos approach is itself an improvement on bitcoin's approach to consensus. Bitcoins nakamoto coefficient has been bending toward centralization whereas Nano's is bending toward decentralization. Nano's level of decentralization depends on the weighted opinion of its holders.
At this point the major challenges are with UX, especially for users who are not accustomed to self-hosting. I think we have the technologies and ideas to overcome the rest.