Bitcoin fees are ridiculously crazy right now. Since no one ever regulating it.
Regulation can't solve anything in a decentralized protocol. At most, it can affect adoption by encouraging or discouraging use of the protocol. Fees are determined by supply and demand: limited block space vs. demand for transaction confirmations.
I wish someday more online wallets will pop out. So it may happen they wont ever be able to monopolize this transaction fees. Its all just due to their greediness.
Market competition among wallets won't change anything. No one is "monopolizing" the fee market (although Bitmain is probably manipulating it). There are many wallets which allow you to set whatever fee you want. You can send transactions with a 1 satoshi/byte fee rate, but it might never be confirmed.
A $25 bitcoin transaction fee is only 25 cents using litecoin. Whenever I have to send a payment I try to use litecoin if possible
This is only true because the network is small; nobody uses Litecoin to transact. Its protocol is just a clone of Bitcoin with different parameters, so it has the same fee mechanism.