Thats why I said this
The price for fees can change, more wallets need to implement this feature tho. That is all that is needed for there to be no queues.
The more efficient the market and price finding mechanisms are the less queues there will be. Even with a small block size.
If wallets allow for the fee price to be changed, queues for average users will be rare and there will be a known amount above which users can be certain of getting into a block immediately.
If wallets additionally have smart price finding mechanism the market will be even more efficient and queues will be rarer.
If you have replace-by-fee as Peter Todd is trying to advocate, and wallets and pools implement that functionality, the market can be even more efficient and users can have a flawless experience without having to worry about fees at all.
I believe that having some fee pressure will push wallet developers to implement these relatively simple abilities. Some small block size increase(s) will be needed tho at some point.
Sure, let's say I agree with all of the above. To me, it's all moot without significant growth of users - growth that by your economic analysis won't happen with fees that are too high since the customers will go elsewhere. Either we can scale this thing 100X+ from where it is today or it's not interesting.