yes, competition against fiat money transfer costs is very relevant

for all transactions on chain above about $1000 nominal exchange rate value the fee rates are close to 0.1%, and as you increase your tx size this overhead cost drops proportionally

a large majority of small transactions are now being done off chain with LN... i pay my VPS bill with btcpayserver... many businesses are adopting this easy to deploy system and this is bitcoin payment volume that never sees the chain in any substantial way