The LN cannot compete with SNBN, an alternative distributed payment network that was developed a few years ago (but remains poorly known by the cryptocurrency community).

The SNBN charges very low fixed fees (around 0.01 USD or so per transaction), and usually provides confirmation in the next block for any transaction that pays that minimum fee. Unlike the LN, in the SNBN any user can send a payment to any other user at any time, with no need for explicit channel setup or settlement operations, special protocols, routing services, extra communication channels, vigilantes, or middlemen. SNBN users do not need to negotiate with hubs and reward them, or watch the blockchain 24/7 for attemted fraud; and they can receive payments even while disconnected from the internet. The SNBN does not require users to lock up funds in channels; each user has complete control of her bitcoins at all times.

The only advantage that the LN might have over the SNBN is transaction confirmation speed. In the SNBN, as it was implemented, the delay D to first confirmation is a random variable with 10 minute average. In contrast, the LN, being non-existent, can execute a payment about 2 seconds before the sender even thinks about sending it. But, if that turns out to be a problem, the SNBN could be reconfigured with a much smaller D, even 1 minute or less.

The SNBN is Satoshi Nakamoto's Bitcoin Network. It was operational from 2009 to 2015, when it was replaced by the GCTN (Greg's Clogged Toilet Network). It would still be working fine today, if the block size limit had been increased as planned, so that it remained effectively unlimited (that is, much larger than the actual block sizes).

Granted, the SNBN had its substantial portfolio of unsolved problems; but they affect the GCTN too -- and hence the LN, which is supposed to use the latter as its foundation.

Seriousy now: Blockstream's roadmap calls for intentionally crippling the bitcoin network, presumably in order to make the "layer 2" network seem an improvement, and force all bitcoin users to use it.

But that strategy cannot work, and will surely backfire. AlphaBay, for instance, just announced that they will accept ETH as payment too...