actually, every one have their own choice with different reasons to use bitcoin as daily use payment. In my point of view, i choose to store bitcoin in my wallet (holding) and some of my bitcoin will be traded on short trading, then after i get some profit i usually withdrew the btc to fiat before use for payment on daily purchasing.
Nothing wrong with laszlo that he bought pizza for 10.000 btc, it was his choice to do it. No one knows exactly what will happen in the future including the price of bitcoin will rise or drop.
That's much the same as paying with BTC. When I want to buy something or to purchase something then I had to sell some of my BTC to fiat so that I can buy it. Cryptocurrency is not banned in my country but there aren't establishment that accept crypto as one of the payment method use in transactions that's why I sell BTC to fiat before buying. Better focus on the question in the title, my answer for that will be No, I won't feel bad while paying BTC. BTC is created for that purpose and more. It's up to us on what to do with it and what you want to spend with your BTC.
Same too but what I myself did was to separate my bitcoin accounts. I have a bitcoin account for long term holding, one for emergency and one for trading that is how I roll with my bitcoin. So changing it to fiat is not a problem for me as I have already split them for various purpose with different wallets.
Then for my country it is not that government put a ban on Crypto currency but the central bank in my country put a ban on the bank from transacting with Crypto currencies and since then no one date talk about it in the bank or conduct transactions with a note related to Crypto on their transaction otherwise you face the risk of loosing you funds and account blocked but we do p2p trade for exchange of bitcoin to fiat very easy for us so it is a no issue for us in my country.