A £1.50 transaction (on testnet at least) ends up over £2 with network fees.
Fees are not fixed, you just made all that up.
Minimum fees are less than half of $0.01. On Lightning, they're 10,000 times less than that.
The fees are fine if it's thousands but even then, it's free with the banking system. I can send a penny or £50,000 and neither cost me anything. Where is the incentive to use bitcoin when it costs more, takes longer to confirm payments, and if I snap another phone in half I've lost everything? Obviously if I actually used bitcoin then I'd have backups and multiple devices, but for most people that's just extra work when the system they know and use has none of these issues.
If crypto is going to become a viable transaction system for the masses, it needs to change and not be it's own "currency" that needs exchanging with massive price volitility.
It isn't pitched as a viable transaction system for the masses, it's pitched as a viable transaction system for people who don't want their money to be controlled or inflated. Banking system can't compete with Bitcoin version 0.1.0 when it comes to control and inflation, let alone today's Bitcoin