What am I missing?

First, it's a real problem with plenty of demand. I want zkp privacy for my bitcoin. I want to stop losing people like Jeremy Rubin and Joseph Poon because forks are too hard (we could already have a ctv drivechain). And more things besides that. So to say there's no demand is wrong.

Second, the only way to have a trustless pegout would be for nodes to verify the sidechain rules. This would kill decentralization. Trusting the miners with the peg out is a simple solution that has good tradeoffs (svp wallet users (the majority of Bitcoin users) already trust the miners). So to say that the lack of a trustless pegout is a problem is also wrong.