I'm sorry, but is it REALLY that big of a deal? It seems like people enjoy complaining about trivial things. I have my iPhone and Apple Watch on me at all times, and I use them wherever Apple Pay is accepted. But I also carry my wallet with me, because I have my driver's license in there, my credit cards, and sometimes cash (but not usually). If I'm leaving the house, I have my physical wallet. If a place doesn't accept Apple Pay, I use my credit card. It's not the end of my world. I'm not inconvenienced. I don't get all the fuss.
Most of the sit-down restaurants I go to don't take Apple Pay either. Especially mom and pop shops. They bring me the check, I throw my CC in there, and they bring it back.
Seriously, is this the hill that ya'll are going to die on?