>>In order to gain the necessary L2 support, they'll have to establish dominance relative to bitcoin with an equally lacking TPS.

In terms of utilization, Ethereum already has, exceeding Bitcoin in transactions per day:

https://etherscan.io/chart/tx

And doing so while the average complexity of transactions, which is measured by the number of gas units a transaction consumes, has increased:

https://etherscan.io/chart/gasused

It has also overtaken Bitcoin in the economic demand for its blockspace, with Ethereum miners earning more in fees than Bitcoin miners:

https://coinmetrics.io/charts/#assets=btc,eth_log=false_left...