Difficultly adjustments have nothing to do with fee rates. It adjusts to keep block times near 10 minutes.

The fee rate is simply a free market for block space. Its what people are willing to pay to get their transaction in a block. It is working as designed. As many shit coiners have pointed out bitcoin will not handle all transactions on the main chain. This is why Lightning exists. It is also important to understand that the reason for such small blocks is to guard against centralization of nodes.

As far as inscriptions goes they will eventually get priced out as well. This pain we are feeling now will require technical solutions to be developed. If fees are rising that is a signal of the market desire for block space. It encourages miners and further development of layer 2s and 3s.

Currently bitcoin is used by less than 1% of the population. Layer twos need more development. If you are concerned I recommend diving into lighting. Use it and support the devs building the tools.