The 1 MB blocksize limit limits how many poeple can use Bitcoin.
Wrong. Real usage has never pushed the 1MB blocksize. If there was real demand that was pushing the 1MB blocksize, things would be different. The only times 1MB blocksize has been somewhat pushed is by temporal and non real-use spam attacks.
The so called stress test pushed to the limit of 1MB. Otherwise we are safe until the middle of next year.
I believe the blocksize should increase 2MB every year. That is when side chains become popular. Otherwise, the blocksize should be even higher.