I wanted to point, that there's lightning adoption which means that higher transaction fees temporarily don't necessarily reduce its utility. At least not to everybody.
How
are people growing LN adoption anyway? It does not seem to be the subject of late in the wider crypto community (DeFi, NTFs, and other trending stuff).
Exchanges (the preferred "wallet" by the majority of users) aren't promoting this tech either.
Having coin tied up in LN channels removes flexibility when compared to using on-chain transactions to whoever you are trading with. This is because you are restricted to spending amounts the network can support based on available routes. This will always be the case, but the issue is pronounced today because LN is still in its infancy. There is also the issue that most LN wallets are not as established as other popular wallets, and require the end-user to run a full node in order to use them (electrum does have LN support, but open channels cannot be in the middle of a route for other payments).
As a result of the above flexibility issue, most people will not use LN unless the cost to transact on-chain is high in absolute terms. There will be some people who will use LN in order to test out new technology, and who hope to profit from routing transactions, but most casual users will not use LN when on-chain transactions are nearly free.
I think once