I especially use credit/debit cards for small purchases because the banks take a good chunk..
I'm missing the intent ... that causes pain to the merchant, who in turn raises the price -- the only winners are the payment network s and credit card issuers.
Right, the merchant raises prices, which in turn allows banks to make more fees. If the banks get away with charging higher fees to the merchant instead of the consumer, then the merchant again raises prices and the banks make more in fees.
The intent is to break that vicious cycle. At some point, Bitcoin will fit into the picture.