I sense you try and provoke emotions. That aside, in the page you linked to, I presume written by your good self, I read:
I don't see how variable, market-based transaction fees can scale. I go to a merchant's website to buy, how do I select a mining peer to pay transaction fee to? Do I attach some bounty that any peer can earn if that peer wins the Proof-of-Work block? But what if my bounty isn't high enough to attract a peer given high transaction volume competing for priorities? Or not enough to cover any peer's mining overhead. How do I know how much to bid to be sure my transaction completely timely?
Currently we are all riding the "raw" protocol.
Should bitcoin go mainstream then layers will be placed on top and/or existing unused script aspects of the protocol will come into play.
So instant verification will be carried out by banks for "trusted" users, users will pay them for the service and the banks pay lloyds of london for insurance against losses.
The mainstream wrapper around bitcoin will be nothing like what we see of bitcoin today. bitcoin will solely be used as the foundation, tangible backing for a new money.
Bitcoin will not prevent fractional reserve banking occuring on top of it. But it WILL prevent fiat money happening with it.