Indeed, transaction fees have made Bitcoin obsolete for small transactions. You're quite right in that regard. However, a number of alt-coins have much lower fees, and faster resolution, ideal for buying a cup of coffee or whatever low-value spend you might have in mind.
Do you think we should use bitcoin for small cash change transactions? I think no, bitcoin is a great value coin, its use in small transactions is wasteful, instead, we should use it for transactions in different countries, it Still the most convenient currency of all, high value, we do not need to spend too much money.