I remember that back when Bitcoin was starting to get attention, one of the key arguments against eg Paypal was that you could transfer your money without paying any fee (and yes, the tx didn't get stuck). But now the network has reached the point where transaction fees are sometimes higher than Paypal or similar. Even worse, if you managed to collect a lot of Satoshis from various faucets or such, you have only accumulated so-called dust and are practically told to forget about it.
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For starters, promoting Bitcoin as a free way of transferring wealth was always a stretch. By design, transactions are not meant to be free. But I guess that was appealing to masses and people got carried away in promoting BTC this way.
Right now Bitcoin is far more expensive (and slower) on average than PayPal (with free non-purchase transfers in the same currency). But the biggest selling point was/is decentralisation and freedom from censorship - you're in full control of your own funds and can send them to whoever you want anywhere in the world.
Despite what some people think, insanely high txs fees are the issue and something will have to be done or Bitcoin will get replaced, that's how free market works. Hopefully we'll see SegWit + 2mb blocks in near future (as per NY agreement), not a pretty solution, but at least it breaks the stalemate.
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What about:
1. Increase blocksize so that more transactions can be included into a block to lower fees. Why isn't that done?
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There are literally hundreds of threads in this forum alone regarding this subject, don't start another one, do some research.
I don't think the fees are higher than PayPal's when it comes to overseas transfers + currency exchange. I'm an EU citizen and remember receiving some cash from a friend in the USA and it included normal overseas transfer + conversion to Euro, and it costed me about 20. Me, because my friend didn't even know it's going to consume so much, so he sent a full sum and when I got it it, the fees were deducted from the sent amount and I got much less than I had expected.
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Paypal rips you off on currency conversion, but if you want to be fair in comparing PayPal Vs BTC, you should compare cost of sending bitcoins + cost of converting BTC to fiat, which also doesn't look very good in most cases.