33 dollars was the suggested transaction cost. I'm doing non-segwit transactions on my Ledger for 5 satoshi's with confirmations in the first block.
I know that people are drastically overpaying, but that sounds like a bit of an overstatement. I was comfortably making 5 satoshi/byte transactions (non-Segwit) a month ago, but the spam has gotten considerably worse. That said, wallets like Mycelium are definitely estimating fees too high.
Is this also the reason were having this transaction debate, bad fee management ?
Bad fee estimation algorithms, mostly. Mycelium is bad, Electrum is bad, Core isn't great either. Users are usually best off manually setting fees based on current congestion and urgency/priority.
The biggest problem is that there is an assumption made by most wallet software (and their devs) that you need urgent confirmation. Even when I've used Electrum's "within 25 blocks" setting, I paid way too much and got confirmed in the next few blocks.