✨I agree!✨ Here are my thoughts 
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No, it isn't really a need. It is however a solution to one problem that Bitcoin users face, and that is, trust. Peer to peer transactions are not different than a transaction handled at an ATM except the ATM is holding the wallet of the peer the ATM user is transacting with. The reason the ATM is more trusted than "some guy" is purely because it is a machine, attached to the blockchain, and has all the familiar features we are accustomed to like buttons, receipts, and a toll free phone number to call if an error occurs etc.
.No, it isn't really a need. It is however a solution to one problem that Bitcoin users face, and that is, trust. Peer to peer transactions are not different than a transaction handled at an ATM except the ATM is holding the wallet of the peer the ATM user is transacting with. The reason the ATM is more trusted than "some guy" is purely because it is a machine, attached to the blockchain, and has all the familiar features we are accustomed to like buttons, receipts, and a toll free phone number to call if an error occurs etc.
I think there is a need for an ATM. This is because they connect Bitcoin to Cash. I agree, trust is something that is an issue for bitcoiners, in a peer-to-peer transaction. But, what about the people who aren't tech-savvy enough to even understand what Bitcoin is?
If they want to buy or sell Bitcoins, they can easily use ATMs to do that in a more conventional way. (Which they are comfortable with.)
The fee that is placed on top of the actual value when purchasing from an ATM is often a painfully out of proportion amount. Also to withdraw cash from the machine will yield a disappointing, below market result. Yesterday at a popular Bitcoin ATM machine the current VALUE of btc was 2848.00 but the ATM charged 3200 per coin to purchase. OUCH! Then if you wanted to get cash, you "sell" your coins to the machine and it was paying $2340 per coin. More ouch!
I agree, the fee is a lot, when transacting on ATMs. This is something that ATM operators need to work on. I think the fee shouldn't be more than 1-2%. (Currently it's around 7-8%)