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I think we don't have to withdraw using bitcoin, but we can use altcoin to withdraw and reduce the fees. If you think that the fee for withdrawing your bitcoin is too big for you, you can select the altcoin, and send it to your favorite exchange, and if it has a conversion from the altcoin to your currency, then that is good. You can directly sell your altcoin and get the fiat. But if in your exchange doesn't have a conversion, then you should convert it again into bitcoin, and convert it into your currency.

It will no problem if you still have to pay the fee of converting your altcoin or your bitcoin because the fee will be something that you should pay. So I think we don't have to confuse and think much about the fee because we have so many altcoins that will help us to reduce the fee.

Trading fee is a normal thing but withdrawal fee has been in discussion for long, i mean it is a bit controversial as some exchanges charge high withdrawal fee like hitbtc while some exchanges charge small and reasonable withdrawal fee like most of the top exchanges so i think there should be uniformity in withdrawal fee and all high charging withdrawal fee should re-consider their policy regarding it.

Is this a topic for exchange operators or for traders?

Both exchange officials and people who are going to withdraw must need to analyze about the "current network congestion" and from that they must decide about level of fee based on waiting time. There are lots of tools available to directly (without need of bothering about mempool size nor about count of unconfirmed tx) get us the fee structure from immediate confirmation to delayed confirmation.

Exchanges (or any service provider) must need to set withdraw fee that they are going to charge from the withdraw money. When there is big change on network congestion and exchange failed to alter may result in more transaction unconfirmed for longer duration.

2.What is the difference between the withdrawal fee and the on-chain transaction cost?
Everyone may be confused about this. In this case, the only difference between the withdrawal fee and the on-chain transaction cost is that the user hands the withdrawal fee to the exchange, then the exchange gives this withdrawal fee to the miners as an on-chain transaction cost, isn't it? Actually, the difference is more than that. The exchange does not just do a simple transfer of these fees.

Taking Bitcoin as an example, when a user initiates a transfer on the Bitcoin network, usually the user needs to pay a certain transfer fee to the miner.  The transfer fee is generally 0.0001 to 0.0015 BTC, but because the capacity of the block to accommodate the transaction record is limited, the miner preferentially packages transactions with high fees, so transactions with high fees can be confirmed faster. Especially in the case of block congestion, higher fees can greatly increase the probability of transaction being confirmed. Then the evaluation work falls to the exchange. The exchange can evaluate the network congestion of the blockchain network, and then pay the appropriate amount of processing fees to ensure that the users' withdrawals get packaged and confirmed as soon as possible. When the block is abnormally congested, it may be necessary to pay a fee several times higher than usual to ensure that the transaction is packaged and confirmed.

Therefore, the exchange eliminates the task of evaluating the status of the block for users, and users only needs to perform a few simple steps to complete withdraw, and the remaining complicated work can be left to the exchange.