If you ever use Bitcoin as a currency you'll have change/dust and UTXOs way smaller than that.
The assumption is no transactions will use L1 as "currency" -- it will be Lightning. So you might have a 1M channel transaction on chain with no change.
reply
In the future yes. In the last decade and currently now there are many businesses that only accept Bitcoin on the chain.
reply
If you are spending on-chain, then you want to keep your UTXOs small for privacy and safety.
reply