I'm not trying to nitpick you to death, but this is really the crux of it. From an absolutist sense, or maybe a Hayekian one, you're right -- fiat makes these signals unreliable. But what does that mean, practically? On what timescale?

It's undeniable that state-controlled money screws up the purity of the price signal, and all the human values that it aggregates. In return, the state assumes some ability to influence the coordination of people who operate under that fiat standard. Is this privilege abused? Clearly. Can it result in disaster? Yes, many examples show it. But does it have its virtuous uses? Could it be, on net, good?

Most bitcoiners would scream "no!" but most everyone else, including people from all over the world, throughout modern history, who have spent their lives thinking about the topic, and who did not stop their intellectual journeys after reading the Bitcoin Standard, have more nuanced views.