Even with the very low fees we now have on BCH, there is no need to do EVERYTHING on-chain. Very small txs are impractical even with 1 sat/B fees.
Imagine the LN, if nobody ever dreamed of using it for moving more than a couple of cents. There would be no liquidity issues, ever. Anyone with $10 could be a "liquidity provider"...
High-degree, high-liquidity hubs would be far more decentralized. You wouldn't need watchtowers, since the risk of channel theft would be meaningless when channels contain just cents.
Now couple that with low on-chain fees, so channels could be opened and closed much more easily and frequently, and the risk/liquidity barriers become quite negligible.