Here is Andreas explaining why segwit is the way to go:
https://medium.com/segwit-co/segregated-witness-and-aligning-economic-incentives-with-resource-costs-7d987b135c00#.yrq6jipqg

if you ignore using a hub and instead go for the 'hop' idea of LN... the costs are even bigger and penalty risk is higher

eg
A<->B
B<->C
C<->D
D<->E
imagine A wanted to pay E using the 'hop' concept.
first A move funds to B..
B wont change his funds with C for free so A has to pay a fee to B to thank him for his involvement
next B move funds to C..
C wont change his funds with D for free so A has to pay a fee to C to thank him for his involvement
next C move funds to D..
D wont change his funds with E for free so A has to pay a fee to D to thank him for his involvement

so to pay E is 4x the fee compared to just trading with B

this is what blockstream are hoping for. so this is where they become X (a hub)

A - X - E
   / | \
 B  C  D

now everyone only has to pay 2x hop fee (A pay A->X, A pay X->E).  but everyone can trade with each other.(via X)
downside.
now X has 50% authorisation permission status with everyone.
now X has can be the deciding factor of how long they want to make customers funds mature for after settlements confirm (CLTV)
now X has can be the deciding factor of chargbacking their customers funds after settlements confirm (CSV revokes)

yea they may get some competition where starbucks or walmart become a hub. and offer a cheaper fee. but thinking that the 'hop' concept will be used dominantly is not a rational end result.