It's still expensive but much cheaper compared to its peak during ETH DeFi/NFT mania back in 2020-2021. At that time, executing a swap or mint transaction could cost tens of dollars with no guarantee of success which is really frustrating.
Main Question
Assuming I hold 0.001 ETH mainly for a gas fee only and the value was 0.56$ then price surge up, is the increment going to be on the Sats? E.g ( 0.002 ETH ) or the increment is going to be on the value? E.g 0.001 ETH = 1.06$?
No, if the price of ETH increases, the increment will be reflected in the dollar value of your 0.001 ETH (from 0.56$ to 1.06$) and not in the amount of ETH you hold.