Exactly! Like leaded gasoline or children's toys made with arsenic.
Why on Earth would anyone pay more than $1 for a USDT?
Because there's many areas on earth where one cannot access USD, so USDT is quite nice, even if you over pay for it.
Like what? North Korea? Because I'm drawing a blank for the rest. Even in Russia and Iran you can own and transact with USD.
You certainly can’t get $1 for literally $1 anywhere unless you are using an American bank/credit card that you are an American customer of. The exchange rate is far worse
What makes you think the spread on turning Pesos (-> BTC) -> USDT, or vice versa is any better? Market makers and exchanges don't work for free.
And since you can't buy groceries or pay rent with tether, and you need to convert it from/to fiat, you're not actually solving any problems by using it.