An ETF makes sense for those with limited capital just getting started.  But for anyone with a bit of an established pool of funds and expectations of new capital via savings I think it makes more sense to buy stock directly and build up your portfolio gradually in terms of diversification both within and between sectors.  Assuming of course one has the time, interest and ability in managing their own investments.

Shutting off or curtailing leakage to fees or inefficiencies from the start will yield you significantly higher returns over time.   Depending on your particular situation it may even help reduce taxation.

I also think that some people become reliant on ETFs/MF out of complacency.  The returns are positive and the fees quoted as a percentage sound reasonable,  not so much when translated into actual dollars  Many people would be shocked if they actually took the time to compute the compounded drag on their portfolio.