No this is not logical to say. Another coin would take over as a highly transactable commodity, but to say "take over" is incredibly vague. I am suggesting such a low size renders this "commodity" like gold, and this would have an incredible utility in relation to our current financial system. This is the issue I see, people want bitcoin to be both a fundamental basepoint and a highly transactable material. I suspect it cannot be both, should not be both, and won't be both.
Are you sure, that at such a low block size, bitcoin is worthless? I suspect that the only true issues with price is uncertainty. And so once we solve this issue, this will change.
I am absolutely sure that a low block size will be worthless for the reason that the commodity of block space will still not be scarce. On the coinmarketcap site you will see Megacoin, Vertcoin, Quark and many others, all of which are functional clones of Bitcoin. They all offer block space for trustless, peer-to-peer, censorship-free, permissionless, rapid, 24/7 electronic transactions. Why should anyone pay $5 to send a Bitcoin transaction when they can spend 5c of Vertcoin to achieve the same result?
If Bitcoin became permanently block-space limited, then it would be quite simple for Bitpay and Coinbase to offer Litecoin or Megacoin as an alternative to customers who are priced away from Bitcoin.
The Bitcoin-for-buying-a-Ferrari only works in the real-world if Bitcoin can also (theoretically) buy a million coffees at the same time. You like the pyramid analogy, think of a pyramid of transactions by value. The ability to do a series of low-value transactions supports the ability to do higher and higher value transactions.
You ignore the wealth of nations, and point out what would happen if we rendered bitcoin as a gold, higher velocity currencies would arise. What you point out about other clones is not observable as reality in a non vacuum because bitcoin is real and so what you point out must be related to bitcoin. There is only one first to the market; such is its value. I think this should be clear.
The gold and silver money which circulates in any country, and by means of which, the produce of its land and labour is annually circulated and distributed to the proper consumers, is, in the same manner as the ready money of the dealer, all dead stock. It is a very valuable part of the capital of the country, which produces nothing to the country. The judicious operations of banking, by substituting paper in the room of a great part of this gold and silver, enable the country to convert a great part of this dead stock into active and productive stock; into stock which produces something to the country. The gold and silver money which circulates in any country may very properly be compared to a highway, which, while it circulates and carries to market all the grass and corn of the country, produces itself not a single pile of either. The judicious operations of banking, by providing, if I may be allowed so violent a metaphor, a sort of waggon-way through the air, enable the country to convert, as it were, a great part of its highways into good pastures, and corn fields, and thereby to increase, very considerably, the annual produce of its land and labour.
I suggest a smaller block size, that creates a less transactible material in the velocity sense, would effect price.