As both a consumer and a merchant I really like this world where even small transactions are insured as it means that everyone--including me--can just mostly trust everyone and not have to have some complex passcode or multi-factor security setup to access and spend money. I like that I just have a card in my wallet that I can nigh unto flash at people and be handed a hotdog, and yet if someone steals my wallet or tries to hold me at gunpoint there is never any reason to not just hand them my card.

You like it because the costs are hidden from you. I bet you'd think twice about using your card to pay for your hotdog (or even something like a MacBook) if they explicitly passed the fees onto you and you could opt out with cash.

There's room for both systems for different kinds of transactions with different kinds of merchants.

As a merchant, they would pay those fees--so no, the costs are not hidden for them. Did you miss that part?

You don't think some startup will not take fees? Who is paying for infrastructure and salaries?

The fees can be a lot lower when you don't have to maintain rewards programs, liability for fraud, or dispute mechanisms.

Bitcoin is ridiculously inefficient compared to what a centralized entity could be and it's already cheaper than wire transfers or even credit card transactions over a certain size.

There will definitely be fees, but they will be set through competition, as opposed to defined by VISA/Mastercard at will.