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 1. Is it impossible for arweave to work without their creating their own money? If so, I'm willing to learn more. 

2. Bitcoin is currently terrible cash for me because I only know 1 person that accepts it from all the people i buy from often.  
 Right, they need to create a programmable unit to follow the rules.  We’re going to be releasing some articles on it in the next week.  There’s also docs.arweave.org with a lot of good info.

Bitcoin lightning could be good money if people actually self-hosted their liquidity and owned their private keys, but these are big obstacles for the average person.  Fighting Bitcoin lightning vs Monero vs others, is in my opinion not that great, it just divides the community.  Instead, we focus on accepting all of them, and encouraging people to get off banks.