You are not comparing like with like. If I send $1000 by Western Union it will cost me £667.54, which works out at a charge of 8.2%.
Yes, sending bitcoin will be free, however I need to buy bitcoin with British Pounds, and the recipient needs to sell them for Dollars. At current rates, I would need to send 1.25 Bitcoins to enable the recipient to convert them into $1000, and that would cost me £659.03. A little cheaper, yes, but a lot more hassle. It works out at a total charge of 6.8%. Paypal charge a 3% currency conversion fee + 0.5% cross border fee + 3.4% debit card fee, so 6.9% in total. Sending money via a currency broker can cost as little as 1% in charges, much cheaper than Bitcoin.