They would pay more if Bitcoin got more usage, but at least it was the usage it's indended for and the usage that is actually needed in this world i.e. censorship-free money transfers.
And expensive fees, which would discourage them to use it as currency. Again, what's the problem? The fact that someone decides to play by the rules and pay for stuff you don't approve of, or that the Bitcoin network can't handle lots of on-chain transactions cheaply?
Sure, but as me and others said before: Bitcoin already isn't maximally free and already has some rules that may be against 'the market' in favor of keeping it suited for its original purpose.
I don't believe the rules we have (besides the consensus) limit an activity with high demand. As said by pooya87, standard rules are soft rules. If someone desperately needs to make a non-standard transaction, he will. And theoretically, miners should allow any transaction that's in favor of their pocket, which means to follow minimum to no standard rule.