Visa does something like $11 trillion in volume per year. Why does anybody use that if visa takes 1-2%?

1% of 11 trillion is 110 billion. With that amount of fee revenue you'd be able to secure the Bitcoin network 12,000 times over.

So Bitcoin's security is able to grow by 1,000x and still cut prices relative to current popular providers by 12x.

That's cheap, not expensive, and that will lead to demand over time.