Things are still priced in dollars though with btc acting as the medium of exchange.

You see a pupusa for $2. You type $2 into your wallet which converts it to btc based on the current exchange rate. The recipient receives that btc and ideally converts it back to USD immediately. Both ends of the transaction are valuing things in dollars but uses btc (perhaps over Lightning network) to transfer the value. In this scenario, there is little to no exposure to the volatility of the price of btc.

Western Union is the only option for so many people around the world still. There definitely seems to be a need to disrupt cross border remittances.

Not if they're not buying/selling things from/to outside the country in BTC.

Why does that not count? I could use bottle caps as currency with my neighbors if we all agreed to it.