Fractional reserve banking makes gold or gold-backed currency impractical.
No matter what, 9/10ths of the money in circulation held as bank deposits would still be backed by nothing and subject to wild swings and devaluation. Whether it is 9/10ths or 10/10ths makes little difference as the 1929-1934 and 1934-1941 periods of the Great Depression demonstrated. You could have your gold while 9/10ths of the economy still evaporated.
The “wild swings” of the past are a bit beside the point. The problem with dollars today is nobody can invest for the long run without knowing how much the dollar will be trashed. Any backing will be better than nothing and economic strength makes most of your argument moot.