@Mike-And-Jane0,
Maybe I am giving hosts more credit in their ability to monitor and manage their payout methods so that they incur fees only when absolutely necessary and not select Fast Pay as their standard payout method.
I am probably wrong and not good with financial mathematics, but I think that your calculation of the Fast Pay 1.5% fee equaling to a 70% APR may be not be applicable because it's a one time fee and doesn't accrue or compound interest periodically. I believe that your statement would be more accurate if hosts were borrowing against their future payouts and were charged 1.5% weekly until the loan was repaid.
But I will add that this service will be ultimately more costly for hosts who frequently receive payouts in amounts smaller than $1000 USD, and they should monitor and manager their future payouts and change their payout method based upon urgency or time sensitivity to receive the funds.