Yes, the huge transaction fees are making ERC tokens useless. I have a couple of tokens on my wallet of value around $20 but what I'll get by transacting them is net zero. Put some eth for fees allow access to uniswap, exchange the coins to Ethereum and get those ethereum back to my personal wallet, I'm getting exactly what I sent for tranaction fees. Ethereum is still a good trading pair is centralized exchanges but there's no way it could get volumes in dexs and dapps. There are many alternatives to it but whenever one of them gets much attention, the fees rises again making it less attractive. Still the fees would be much lesser than ethereum network.
There are some ERC-20 tokens that are true "gas guzzlers". That's because the developers of the token did not optimize the code to consume as less gas as possible. The same thing happens with dApps (smart contracts). There are too many useless ERC-20 tokens on the ETH blockchain making fees soar like there's no tomorrow. We can blame "meme" tokens like Shiba Inu for this.
Unless ETH developers increase transaction capacity of the Blockchain, things are only going to get worse in the long run. Not even off-chain scaling solutions (L2) such as Arbitrum or Optimism will work. These networks have ultra-low fees and blazing-fast speeds, but they require you to make a "deposit" on the main ETH blockchain which consumes gas. I wouldn't advise moving to other chains unless you don't care about decentralization/security/reliability. Let's hope someday ETH gets better with low gas fees for everyone. Just my thoughts
