I don’t think bitcoin can handle such high load unless people use lightning network. Is it possible? Yes, but so far businesses aren’t showing LN any love.
So far, this looks like the best solution to make Bitcoin more acceptable as a payment method. But there's still one big issue, volatility. Some people might still be discouraged to use it because of that. Unlike USDT, which is a stablecoin, you don’t have to worry about price swings. That basically removes the risk. So yeah, with that in mind, I don’t really see Bitcoin being feasible for wider daily use.
True, governments are not the cause why Bitcoin is not popular as a means of payment, most businesses are not willing to accept it likewise holders are not willing to spend it. The main reason being that is volatility, no business wants to receive Bitcoin as payment and it dumps the next minute when they need to use the capital to restock immediately. Also transactions fees can be a discouragement for means of payments and lightening network is not widely used.
I see stablecoins being used more in the future because they are stable, people don't like volatile currencies for everyday usage.