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It's absolutely not overblown copium. Huge amounts of trade are already happening outside the dollar, and China can obviously see they're the next target so they're redirecting their trade away from the west now as well. This should help you put things in perspective https://youtu.be/RQ3YjZAzqxA
The west has an over inflated view of itself. It's entirely possible that the managers of the empire still don't realize the amount of trouble they're in as well. Once again, you keep trying to treat US as a rational actor here which it demonstrably is not. There is vague realization that things are turning in China's favor, but there's still plenty of chauvnism to go around.
Also, I highly doubt that the oligarchs running the US really want to spend the rest of their days in a nuclear bunker. They'd much rather rule over a diminished empire.