Doesn't phase 0 exclude the ability to transfer money? The whole point of a "currency"???

My understanding is that Phase 0 features the ability to lock up eth and take it out of circulation.

You might consider if perhaps the parties in control of that system have a different idea of its point than you do.

Correct. Phase 0 isn't useful by itself and phase 1 isn't that useful either. Phase 2 is when people can actually start using ETH2 instead of ETH1.

PoS would be more egalitarian if it was that way from the start, however as it is transitioning from PoW this means that anyone that bought in early, now has an opportunity to solidify their position. For new entrants to reach the same level of investment would be significantly higher. So the ETH rich get richer and it widens the gap.