Replacing Cryptonote rings with RingCT value hiding is probably incompatible with microtransactions-at-scale in all current block chain designs because (including Monero) they don't remain decentralized at-scale, but not that was Monero's focus any way:
Although sub-penny microtransactions are not economically feasible with credit cards
nor current crypto-currencies because the fees are too high, these systems could in theory lower costs enough to lower fees to a percentage of the value of the transaction (
assuming transaction values are not hidden with homomorphic encryption, because in which case the oligarchy centralization inherent in these system
has an incentive to raise to fees to what the market will bear cutting out lower valued transactions).
...
Micro transactions is one thing that can be easily provided by a traditional centralized ledger provider that is funded by Monero. The first thing to understand here is that micro transactions by their very nature fall way below any AML/KNC regulatory requirements. Someone funding an account with say 10 USD, in order to pay for say 10,000 page views at 0.001 USD per page view is not the concern of financial regulators. This issue with micro transactions with the current fiat payment systems is not the actual micro transactions themselves but how do you fund the account in the first place, especially if anonymity is desired and this is done across international boundaries? As for the micro transaction provider themselves there is no reasonable reason for them to keep track of who sent 0.001 USD to whom. If they do not have a strict privacy policy then the market can find another provider. Filing millions of suspicious transaction reports for amounts under 0.01 USD each is not a valid reason and could easily land the provider who does this into serious legal trouble with the agency that was the target of such a denial of service attack.