I mostly agree with you, but on the other hand, George Orwell once made a convincing argument that royalty (and the patriotic fervour it produces in some people) is a safer substitute for facism. He argued that the prominence of royalty in the UK is the reason that we haven't had a major facist following in the country, compared to other European countries over the last century. It's worth noting that Orwell wrote this around the time of WW2, so you could argue that things have changed quite a bit since then.

I feel that the royals are a somewhat benign force that might be a good pressure valve for some patriotic people. But if they were abolished, I would not shed a tear.