It is true that if you just keep holding bitcoin without having close eye on market activity than you will actually loss rather than making any profit out of it. So thinking bitcoin as passive way of earning profit is the wrong sentiment.
I disagree with you, the transaction fees are getting higher and it is making Bitcoin unpopular especially to the yet to be told and the newbies. I think he made a brilliant point that it's silly to pay so much for a new technology while my conventional credit card charges nothing to perform a similar transaction.
It may sound "silly" now.. but in 5 to 10 years.. when financial system has collapsed (and this definetly will happen),
the use and existence of Bitcoin will be loved.