I buy a house with a mortgage, I owe $1k a month or whatever to this company to pay my mortgage. If I pay with bitcoin it is a capital gains event to convert it to USD and I would owe capital gains taxes on the $1k per month or whatever my payment is.

It's the same as if I were to convert the bitcoin to dollars on my own and pay via dollars. Taxes are still paid in this scenario just as they would be if I converted the bitcoin to dollars and did whatever else with it...

Why so angry about this?