The goal is to only use the Feds as a backing to ensure not all money is lost. If an insurance company is still around, it is that still provide the service that you paid for.
Do you want the feds to stop ensuring your savings?
What are the costs to ensure people’s bank accounts? It may not be much.
Historically, Federally insured banks fail at a higher rate than uninsured. I do not rely on Federal insurance for my savings, and I am pained to locate where in the Constitution the Federal Government is authorized to perform that function...