I'm not sure exactly how it will happen, but somehow the market will find a way to get bigger blocks.
There's plenty of space in the alt-blocks and off-chain.
You don't need to broadcast every Frappuchino you buy to the entire network, where it will be stored and verified until the end of time.
Tell LTC, PPC, XPM, XCN, BBR, XDN, AEON, or XMR about your gluten-free-low-fat-double-chocolate-mint-Oreo-half-caff. Bitcoin ain't got time for that.