It is quite possible at some point. The thing is (as you pointed out) the two are have totally different purpose. So it's like comparing the Tesla revenues VS Apple's. Both are tech companies, but have little in common. Bitcoin is still the top cryptocurrency and for good reasons, but a shift in the field can happen in no time. It depends on the community I guess.

This is a complex question. Here is my humble opinion based on personal research.

Last year was a huge adoption period. Lots of people started exploring therefore investing in crypto. Lots of good projects came to live, lots of terrible abominations too. But still, the people are interested in the tech. Most of the newcomers have hardly any knowledge on the topic. So the current red theme in the market is based on speculation and safe betting. Let's not forget that there are no particular laws governing the crypto world, so the average person can be easily confused on what to do at a given moment.

The market will grow no matter what. Lots of companies are starting to explore the blockchain and it is a matter of time (several years maybe) to be quite common in our daily lives. The applications of the tech are immense. Till then all we can do is learn, hodl and eventually build something new.

It depends who you ask.

For me, altcoins are driving the overall blockchain tech to the next level. There are tons of scams and phishing baits, but those will be filtered out at some point. Look at Ethereum for example. Tons of people are building great solutions on top of it. There are just too many options and limiting the crypto scene down to a few options will do more harm than good.