What's with everybody saying use L2?

Ethereum is a network designed around the facilitation of smart contracts. * Why should I have to use an L2 for this? * If I have to use an L2 doesn't this mean Ethereum has failed?

I understand why L2 makes sense on Bitcoin since it represents digital property(a store of value). * banks of today use things like fed wire or the swift network to transfer large funds. (this is similar to bitcoin L1) * then for daily transactions today people use MasterCard and visa. (this is similar to bitcoin L2: the lighting network for example)

Ethereum serves a fundamentally different purpose than bitcoin's store of value by the virtue of its design is focused on the facilitation of smart contracts. * For this reason why use Ethereum with crazy high gas fees that force you into using an L2 basically? * Why not just use another smart contract chain where the fees aren't insane?