except that Apple Pay doesn't cost you $1 every time you use it and doesn't take 10+ minutes (or possibly hours) for your payment to process.... what merchant is going to let you walk out of a shop with $20 worth of goods hoping the payment will go through sometime in the next hour or so?
On the other hand, Apple Pay is also centralised and doesn't provide even pseudo anonymity.
Bitcoin is fast moving away from being a viable solution for every day payments toward being useful only as a method of storing wealth. It is likely to get even further away in the future as block rewards get halved and transaction fees increase even more.
The days of shifting bitcoins around for pennies are long gone... unless you want to wait.
You said it. Bitcoin is already dead as a currency, but people just refuse to bury its rotten, bloated corpse. But on the other hand it's thriving as a means to gamble and as a way to save money. Those aspects of it are far from dead. As for the importance of smartphones, they're not so critical for those uses.
Believe me, bitcoin just isn't going to replace fiat in the Starbucks line.