Agreed! The timeliness and quality of the MetaMorpho vault ecosystem is probably my biggest worry around Morpho's success.
Maybe I'm being a little naive, but Liquity has done well in its immutable/ decentralized/no gov niche, and Rari Capital Fuse was a degen zoo, so assuming MetaMorpho gets some traction and mindshare, I think the demand will be there.
Some of the specifics around LTV improvement over the status quo are still unclear though. I wonder if after the multi asset lending pools UX is recreated on top, if LTV will be lowered closer to the where we are now, undermining some of the value prop.
Interesting take on InstaDapp. I need to take a deeper dive into Fluid, but my initial takeaway was that it would be able to play nice with these other projects as a liquidity middle layer.