It’s one of the jobs of a bank though. They are supposed to exchange damaged bills and then exchange them with the mint, who then destroys them.
Honestly we need to get rid of the $1 bill generally but that’s a completely different post all together.
When the $1 coins were released, most stuff in vending machines were still within the cost of a dollar. Thought I’m not disagreeing with your comment. Coins, for the most part, are relegated to coin jars and aren’t really “spent” in the same way that bills are.
The problem is that coins generally are just so inconvenient. I only hold onto them for the rare occasion where I need to feed a meter.
Edit: This conversation reminded me of a great YouTube video on the subject of how the shape of money makes it useful