Increasing I^2R heat loss by 5% doesn't let you shrink the cable much. You go from "humongously phat cable" to "really phat cable". The problem remains.
Also remember that the cost of the petroleum distribution infrastructure is shared between in-town drivers and road-trip drivers. If these "fast chargers" are only supposed to be used by people who need more than one batteryful of driving in a given day (i.e. people on a road trip), the budget available to pay for the refueling infrastructure is going to be tiny compared to the petroleum infrastructure. EVs will simply never "catch on" for non-commuter use if we go down that road.