Yes it has to happen soon, do you remember how I said there could be a spike of adoption due to global events and this is why we should increase the blocksize before this happens. Well it has happened, capital controls in china combined with favorable rulings in the EU have created the perfect storm. The blocks are now becoming consistently full and if we do not increase the blocksize soon, transactions will be rendered unreliable. This would not be a good experience for all of the new people that are now joining our community.
https://blockchain.info/https://blockchain.info/unconfirmed-transactionsIf/when there is contention for space on the blockchain, there is a huge amount of room to grow by simply squeezing out the freeloaders. As it happens, they'll not be left homeless or forced to the alt-ville ghettos due to the development of subordinate chains which provide real Bitcoin power through a proxy and does not bloat the core chain and thus compromise the network or require a hard-fork and associated risk.
In other words, life is good! Just look at the price charts for confirmation. It is funny (and not very surprising) to see the likes of Coinbase desperate to reverse the goodness.