Tech systems, like many industries, work in layers.
For example, in banking the “base layer” is the central bank (the Fed in the case of the US). Then, on top there is another layer, or L2, that are the banks.
The banks process transactions and keep the books with the accounts and balances of their clients.
On top of the banks is another high volume transactional layer or L3 which are entities like Visa, other credit card companies, PayPal, and Western Union, amongst many others.
In the same way, the blockchain industry will be organized where in the L3 you will have the dapps, NFTs, and exchanges; then, on L2, you will have the scalable POS blockchains; and on the base layer you will have Bitcoin and ETC.
The L2 and L3 will not use BTC and ETC for high volume low value transactions because the fees will be too high.
All individuals, corporations, and governments; through L2, L3, and L4 systems (wallets, services, and user interfaces in general); will only use BTC and ETC for high value low volume transactions.
This means that the dapps on ETC will not be for retail use cases like small NFTs, trading, small loans, retail insurance policies, daily retail payments, or video games.
The dapps on Ethereum Classic will be for large value (i.e. hundreds of millions or billions of dollars) smart contracts, large value settlements, and large value transfers and programmes in general.
These will gladly pay high fees (as they pay them today in BTC, ETH, and traditional systems) because it is the only way to achieve or enjoy the level of security that only BTC and ETC can provide because of the POW based Nakamoto consensus mechanism, which is very secure but not as scalable as the higher layers of the blockchain industry stack.
Code Is Law
