What if each block contains 100000 transactions instead of the current 2800, little infrastructure change is probably needed to change that (if any other than code and signalling). Each of those could pay $1 and overpay on the current system.
This sounds like a good plan except that is it not true that the direction of development now is on layer 2 rather than on chain? I think the size is still a problem so they would like to restrict it on chain like that and keep those 100k transactions all on Lightning.
It will probably end up being no fees, but rewards being worth much more thanks to price.