Use of fidelity bonds in pathcoin PoC affects UX. Are there any alternative ways to make it secure?

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Yes, there is more than one way to approach it. See 'optimistic' pathcoin in my most recent post on the mailing list.

Several related ideas; lifting off chain, 2 party, just presigned tx chain, private pathcoin (what you see in that PoC code).

You may also find the slides from my Adopting bitcoin talk interesting:

https://talks.adoptingbitcoin.org/media/adopting-bitcoin-2023/submissions/AANQ8A/resources/pathcoinpres_v69vtvw.pdf

I don't see anything with amazing utility yet. Maybe 'cold channels' is interesting.