Yes blockchain based tokens (so anything but pure currency) always runs into issues when they meet the physical world. Oracles are just trust anchors and as you

Yes blockchain based tokens (so anything but pure currency) always runs into issues when they meet the physical world. Oracles are just trust anchors and as you say there's no way to avoid the reality that physical auditing is necessary to ensure clean exchange of goods and services. OpenBazaar has run into numerous issues over the years and it's been out there as a marketplace before Ethereum ever existed; they all stem from the general difficulty of interfacing with the physical world. This isn't the case for digital only assets though. There are certainly much fewer digital assets people use than physical ones, but they're there. Domain names, forum membership, entry gates, game skins, etc. How many times have you entered a community and thought it would be great to have a tiny bar to contribution, like a small membership fee, enough to weed out spammers and young children? This is aside from enterprise oriented chains like Ripple that just use chains help facilitate regular business.