Beg to differ. After musing for while, I realized Rust could only have chosen monomorphism for its goals, thus it's not a fundamental design mistake, but a necessary choice. One of the overall philosophies is zero-cost abstractions, and only designing a polymorphic system with monomorphism in mind may provide that, because the alternative requires pointers (different type sizes, vtable, etc.).

While, as discussed previously, devirtualization + inlining is a thing, it is not assured and relatively easy to disable. Writing a program relying on these optimizations would produce something bristle and error-prone, and building a polymorphic system around this would be antithetical to the Rust's ZCO philosophy.

Meanwhile, monomorphization can fit functions around the size of the type arguments and access method implementations directly, removing the need for any indirection in the first place. While indirection-based polymorphism can't reliably reimplement monomorphic polymorphism, the reverse is not true. You can reliably reimplement any indirection-based polymorphism with monomorphism, from fat pointers (in fact, Rust already has trait objects to help with that), class-based hierarchies, dynamic typing, etc.