Spot on. It’s still early. The fee market can be viewed as an opportunity rather than a problem.
Sidechains like RSK and Liquid can make these off-chain networks even easier to bring more participants together.
Also, there’s work on hardware solutions like TEE channels being done.
Overall, I agree that this may actually facilitate the transition we need from legacy to Bitcoin by hybrid trust systems where user banks himself but his wallet can access the private network through payment providers too.