That is the only bottleneck for bitcoin to be accepted as a transaction facilitator. The exorbitant fees are holding a lot of people from transacting in bitcoin and forcing to use other currencies like ETH. They are still a lot cheaper than bitcoin and faster as well. It makes no sense to pay 26 USD as network fees because bank transfers are now a lot cheaper than bitcoin transaction.
I would say the volatility is also a major issue, but at least that could be worked around. Bitpay seems successful enough.
But yeah it's blatantly obvious that Bitcoin cannot handle an elevated level of demand. The scaling problem wasn't supposed to start being an issue this soon, so we also need solutions sooner rather than later. We're kind of screwed if this keeps up.